What are Roth IRA Withdrawal Rules?

January 19, 2022

What are Roth IRA withdrawal rules? We go over the five exemptions for distributions you need to know in this week's Arista Advice.

Full Transcript:

Hello, welcome to Arista Advice! Question of the week is: "Paul, what are Roth IRA withdrawal rules?"

With a Roth IRA contributions going in are non-tax deductible, the earnings and growth are tax deferred, and the qualified distributions are all tax-free, which is a wonderful vehicle to put money aside. There is also always limitations on how much you can put into your Roth IRA on a yearly basis. Let's talk about the five exemptions for distributions from a Roth IRA.

Number one: you can use the withdrawal up to $10,000 during your lifetime to pay for a first-time home purchase.
Number two: you can use the withdrawal to pay for the qualified education expenses.
Number three: you can use a withdrawal for qualified expenses related to a birth or adoption.
Number four: you become disabled or pass away.
Number five: You can use a withdrawal to pay for unreimbursed medical expenses or health insurance.

Also, remember to talk with your financial advisor and your tax professional before making a withdrawal from any IRA, 401(k), or Roth IRA. Also, remember to continue to follow your personal financial plan and update it when necessary.

Remember, go to AristaWealth.com to get other videos, tools, tips and resources to help you live a life of significance.