Ask Terry Questions Roth IRA withdrawals

Roth IRA withdrawals

By Terry Savage on April 27, 2018 | Investments

If I withdraw mutual fund assets from my Roth IRA and transfer them to a taxable brokerage account, how do I determine the tax basis in case I need to sell the funds at a later time?

Terry Says

Because you invested AFTER-TAX money in your Roth IRA, you don't have to pay taxes on the withdrawals.  (But there are some restrictions on how long the money must be in there to qualify for this treatment.  Here's a link to the complete rules. ) Now I have a question for YOU:  Why on earth would you do this??   You're giving up tax deferred growth, in a plan that does not require withdrawals at age 70-1/2, and transferring it to a broker who will make a fortune in commissions off of you????   Did the broker suggest this?   If so, report him to FINRA -- and run the other way!!!



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