Comments on: 5 Questions about the Roth IRA http://www.gatherlittlebylittle.com/2010/05/5-questions-about-the-roth-ira/ Proverbs 13:11 - "...he who gathers money little by little makes it grow." Wed, 08 Feb 2012 18:29:01 +0000 hourly 1 By: Staceyhttp://www.gatherlittlebylittle.com/2010/05/5-questions-about-the-roth-ira/#comment-18570 Stacey Mon, 24 May 2010 21:56:22 +0000 http://www.gatherlittlebylittle.com/?p=3267#comment-18570 Contributions, yes. And you can use the 72t rule to withdraw from a Roth OR traditional IRA before 59.5. Contributions, yes. And you can use the 72t rule to withdraw from a Roth OR traditional IRA before 59.5.

]]> By: Sherihttp://www.gatherlittlebylittle.com/2010/05/5-questions-about-the-roth-ira/#comment-18567 Sheri Mon, 24 May 2010 19:22:03 +0000 http://www.gatherlittlebylittle.com/?p=3267#comment-18567 "You must be at least 59 and 1/2 to withdraw from a Roth IRA without incurring severe penalties." I was under the impression that you could withdraw your contributions at any time with no penalty. I've read this many places. Is this incorrect? “You must be at least 59 and 1/2 to withdraw from a Roth IRA without incurring severe penalties.”

I was under the impression that you could withdraw your contributions at any time with no penalty. I’ve read this many places. Is this incorrect?

]]> By: Courtneyhttp://www.gatherlittlebylittle.com/2010/05/5-questions-about-the-roth-ira/#comment-18561 Courtney Mon, 24 May 2010 15:29:27 +0000 http://www.gatherlittlebylittle.com/?p=3267#comment-18561 One other thing related to your answer to the last question (and also reflecting your answer to the first question) - you can only contribute up to your earned income for the year (to a maximum of $5K). For example, if you're in college your only work is a part-time summer job during which you make $2000, then $2000 is your maximum Roth IRA contribution. The exception to this is a non-working spouse, who can contribute up to the full amount provided that the working spouse has earned enough income to cover both of their contribution limits. One other thing related to your answer to the last question (and also reflecting your answer to the first question) – you can only contribute up to your earned income for the year (to a maximum of $5K). For example, if you’re in college your only work is a part-time summer job during which you make $2000, then $2000 is your maximum Roth IRA contribution.

The exception to this is a non-working spouse, who can contribute up to the full amount provided that the working spouse has earned enough income to cover both of their contribution limits.

]]>