Thread: Roth Ira

you max it out for 2007 yet?

At any time, the Roth IRA owner may withdraw up to the total of their contributions (in nominal dollars) without tax or penalty



Roth IRA - Wikipedia, the free encyclopedia

I don't have a Roth IRA, but I decided to look it up on Wiki.

This is what I found:

• At any time, the Roth IRA owner may withdraw up to the total of their contributions (in nominal dollars) without tax or penalty.
• Withdrawals of earnings are tax-free once the participant reaches age 59.5 or becomes disabled, so long as the account is "seasoned" (established for five or more years).

It appears that you will get hit with taxes if you withdraw more than your contribution before the events listed in item number 2. That is, if you withdraw any part of the fund that is a product of interest and not the principle.

I'm not a tax lawyer, but that's how it looks to me. The Fool covers this in detail.

I know there is other situations were they allow you to withdraw without any penalty like buying a 1st home/college/medical expense. According to Fool on there you would be hit with paying taxes on the earned money and a 10% withdraw penalty if you are past the five year tax period.

You would have to be in some really desperate times IMO to take money out of your Roth IRA, with Social Security looking bleak and all these companies screwing over their retirees, Id want every penny in my account to get the most out of my compounding interest.

If you take out a Roth early I think there is the 10% penalty, and....

Why would you do this, DB.

You should google, and do your own research instead of asking here. The advice is awful. One poster went to Wiki to answer your question.


And, stay away from financial advisors. They are sharks. You don't need them.

If you need money, go into saving - never a 401K or an IRA. Period.

There is a penalty for early withdrawal from the Roth IRA except for in certain cases, one of one I remember is buying a house.

That's the reason I don't have one right now - my financial advisor pointed out that I may need my money after college for moving costs, so we decided to go with a straight investment account for now rather than a Roth to avoid potential penalties.

DOMS: What ever happened to your options trading idea? This thread just reminded me of it.

Originally Posted by Big Smoothy

If you take out a Roth early I think there is the 10% penalty, and....

Why would you do this, DB.

You should google, and do your own research instead of asking here. The advice is awful. One poster went to Wiki to answer your question.


And, stay away from financial advisors. They are sharks. You don't need them.

If you need money, go into saving - never a 401K or an IRA. Period.

You are crazy. 401K is FREE money if your company does matching, and for long term investment Roth IRAs will kick the shit out of most other types of investment accounts.

Financial advisors are "sharks" in the sense that they want to make money from you, but that's why you educate yourself beforehand. You don't go to buy a car while uneducated, yet you are willing to plan your retirement while uneducated?

danzik, I think Big Smoothy means if you need money, take it out of your savings, but don't take it from your 401K or IRA. I don't think he's saying not to have a 401K.

Originally Posted by Big Smoothy

If you take out a Roth early I think there is the 10% penalty, and....

Why would you do this, DB.

You should google, and do your own research instead of asking here. The advice is awful. One poster went to Wiki to answer your question.


And, stay away from financial advisors. They are sharks. You don't need them.

If you need money, go into saving - never a 401K or an IRA. Period.

Well that is what I'm asking. I will call my financial advisor tomorrow and confirm what he said.

I just want to know incase something really awful happens and I have to tap into that money. Its not like I'm gonna take out 5k to go on a cruise.

I have a ROTH IRA that I opened up with this guy 2 years ago. He has made me 11% each year. I am starting to do my own investing. I opened up my own ROTH through ameritrade. I plan on funding it for 2007 and 2008. I'm also going to move the funds in the ROTH with my financial advisor to my new ROTH.

Originally Posted by Triple Threat

danzik, I think Big Smoothy means if you need money, take it out of your savings, but don't take it from your 401K or IRA. I don't think he's saying not to have a 401K.

Yup, I fucked that one up nice

DAMN EDIT BUTTON. Won't let me erase my stupidity on that one.

Originally Posted by Doublebase

Well that is what I'm asking. I will call my financial advisor tomorrow and confirm what he said.

I just want to know incase something really awful happens and I have to tap into that money. Its not like I'm gonna take out 5k to go on a cruise.

I have a ROTH IRA that I opened up with this guy 2 years ago. He has made me 11% each year. I am starting to do my own investing. I opened up my own ROTH through ameritrade. I plan on funding it for 2007 and 2008. I'm also going to move the funds in the ROTH with my financial advisor to my new ROTH.

If he is making you 11% every year, why move? That's a pretty solid number unless you are fairly good at investing yourself.

I lost money this last quarter on my 401K.
My Roth Ira is safe.

Wouldn't a bank loan be much cheaper double?

Originally Posted by min0 lee

I lost money this last quarter on my 401K.
My Roth Ira is safe.

Wouldn't a bank loan be much cheaper double?

I'm not planning on taking money out of my ROTH or 401K. I was just curious if you could.

I'm saying worst case scenario. Example. If I lost my job and got in a car accident and had to pay off doctor bills.

Originally Posted by danzik17

If he is making you 11% every year, why move? That's a pretty solid number unless you are fairly good at investing yourself.

I would like to have a handle on all my money. I think I could atleast get 11%. I have my eye on a couple of funds that have been performing really well over the last 10 years. I'm also taking advice from my pops and a guy at work that has been doing really well in the market.

Originally Posted by Big Smoothy

If you take out a Roth early I think there is the 10% penalty, and....

Why would you do this, DB.

You should google, and do your own research instead of asking here. The advice is awful. One poster went to Wiki to answer your question.


And, stay away from financial advisors. They are sharks. You don't need them.

If you need money, go into saving - never a 401K or an IRA. Period.

everything I said was true. Whats your problem


IRA Online Resource Guide - Information About Roth IRAs

You don't get taxed for putting in money in a 401k but when you take it out you get taxed heavily.
With an IRA Roth you get taxed when you put money into your account so when you do take out your money your not killed with taxes.
Am I right here?

Originally Posted by danzik17

You are crazy. 401K is FREE money if your company does matching, and for long term investment Roth IRAs will kick the shit out of most other types of investment accounts.

I know. That's what I meant. Never go into a ROTH 401K or and IRA.

Use your savings (cash) or other means, but never tap into a 401K or IRA.

Financial advisors are "sharks" in the sense that they want to make money from you, but that's why you educate yourself beforehand. You don't go to buy a car while uneducated, yet you are willing to plan your retirement while uneducated?

The problem with financial advisors is the hidden fees they often take. I am referring to Brokerage House (e.g. Smith Barney, etc). It's OK to consult with a financial planner or even use someone with a very good reputation for stock funds.

I am a big fan of John C. Bogle. Put stuff into the S & P and other indexes and never look back. Average return of 12% over the last 20 years. (Vanguard S & P Index.) Very low fees. The fees, and the hidden fees, are the killers. Most mutual funds do not even beat inflation.

Originally Posted by min0 lee

You don't get taxed for putting in money in a 401k but when you take it out you get taxed heavily.
With an IRA Roth you get taxed when you put money into your account so when you do take out your money your not killed with taxes.
Am I right here?

taxes are going up in the future so I like the Roth better somebody has got to pay for all of Bush's mistakes

Originally Posted by NordicNacho

taxes are going up in the future so I like the Roth better somebody has got to pay for all of Bush's mistakes

Yes, taxes will be going up. There is no way around it.

And as I said, I hope the irresponsible government keep their hands of of people's ROTH IRAs.

They like changing the rules, and can do so, anytime.