are roth withdrawals presumed to take your contributions out first?

[luckydriver]

account opened over 10 years ago...my online statement is

 

 

Additions

 

$8,150.00

 

Income

 

$181.50

 

Market Fluctuation

 

$3,926.57

 

Ending Value (as of 10/02/2012)

 

$12,278.05

 

 

 

Net Change

 

$12,228.07

 

 

i'm assuming the additions are what i can take out without any kind of penalty etc. 8150

 

does anyone have experience with how long it takes to get the money? i'm not taking it all out but i need a large chunk of it in the very near future. i see an option online to withdraw so i'm assuming it's pretty instant

[Seabee]

Correct.

 

http://www.irs.gov/pub/irs-pdf/p590.pdf

 

See P. 64 - Ordering Rules for Distributions.

 

I'm sure the timing will vary by financial institution.

 

You should also be aware that if you take the distribution before Oct 15 it could impact your eligibility for the Retirement Saver's Credit if you took it last year, and it could also impact your eligibility for that credit for 2012 and 2013.

[luckydriver]

ty for the info

 

interesting credit i never heard of too..hope others are aware of it

[luckydriver]

i wrote to them to ask a question about fee and part of the reply included this

 

Additionally, any distribution from your Rollover IRA will be subject to taxation and a 10% penalty. You can avoid this penalty if you meet one of the exceptions detailed in IRS Publication 590, which can be downloaded at www.irs.gov.

 

You also have the option to complete a 60-day rollover. When you take a distribution from your Rollover IRA, as long as you return the assets within 60 days, there are no tax or penalty implications. Please note that a 60-day rollover can only be done once per IRA type in a 12-month rolling period

 

 

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it seems like they are saying my IRA is a rollover and it is not. why would they even say this? i wrote to them but i'm hoping this was just a canned response they must send out with all emails. They clearly say the penalty can be avoided but the inferernce is that this is a rollover..or does that even matter really?

[Seabee]

i wrote to them to ask a question about fee and part of the reply included this

 

Additionally, any distribution from your Rollover IRA will be subject to taxation and a 10% penalty. You can avoid this penalty if you meet one of the exceptions detailed in IRS Publication 590, which can be downloaded at www.irs.gov.

 

You also have the option to complete a 60-day rollover. When you take a distribution from your Rollover IRA, as long as you return the assets within 60 days, there are no tax or penalty implications. Please note that a 60-day rollover can only be done once per IRA type in a 12-month rolling period

 

 

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it seems like they are saying my IRA is a rollover and it is not. why would they even say this? i wrote to them but i'm hoping this was just a canned response they must send out with all emails. They clearly say the penalty can be avoided but the inferernce is that this is a rollover..or does that even matter really?

 

Sounds like stock language. As long as your statements clearly show that it's a ROTH, I wouldn't worry.

[luckydriver]

5K just put in my account. they give you all kind of warnings on the site about taxes when you do the w/d but i chose NON withholding so they didnt take the 10% out.

 

and thankfully the fund is up 30% this year so this isnt as much of a hit as it could have been

 

now this weekend to start paying things off..already did one bill online