Please clarify to me and your viewers: From a ROTH IRA, one can withdraw up to the total of initial investment at any time.

Thank you

Terry Says:

Yes, you can withdraw from your ROTH at any time — but depending on the circumstances you may be subject to a penalty and taxes on the EARNINGS!

If you take a distribution of Roth IRA earnings before you reach age 59½ and before the account is five years old, the earnings may be subject to taxes and penalties — unless you make the withdrawal under special circumstances, such as becoming disabled, or a first time home purchase (up to $10,000) and a few other exceptions.

A lot depends on how long you’ve held the Roth IRA, the purpose for the withdrawal, and your age.  If you want to read all the details of the rule, click on this link for the Schwab description of when taxes and penalties on earnings might apply.

 

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