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    Roth IRA withdrawal question

    I am in a situation where I might need to make an emergency withdrawal from my Roth IRA and want to make sure I understand everything correctly
    For example if you have a Roth with $6,000 USD invested
    Your contributions are $5,000
    And capital gains are obviously $1,000 in this example

    Can’t you withdraw $5,000 and less and avoid taxes and penalties? You just are required to not touch the amount of capital gains you made?

    Roth IRA withdrawal question
    byu/Amelia_____26 inpersonalfinance



    Posted by Amelia_____26

    2 Comments

    1. DeluxeXL on

      >Your contributions are $5,000

      You can withdraw up to $5k with no tax or penalty. How you get the $5k in the account to be able to withdraw is irrelevant. Could be gains or dividends or account bonuses.

      >You just are required to not touch the amount of capital gains you made?

      Reframe from the opposite view. Rather than saying “don’t touch the gains”, say “can only withdraw contributions”, because this is more relevant when you file your taxes.

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