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.
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