Can you withdraw contributions from your Roth IRA before retirement without paying a penalty?
474444
Yes.\n\nAlthough you would be penalized if you withdrew any earnings.\n\ni.e. If you contribute $1000 and it grows to $1200.  You can withdraw the original contribution of $1000, but not the earnings of $200.
736781
You can ALWAYS take your own contributions out of a Roth IRA, as you say, they are after tax earnings and the IRS doesn't care.\n\nThey do care about the earnings however.  If you take the earnings out under age 59 1/2, regardless if you meet the 5 year rule or not, you pay taxes and a 10% IRS penalty (unless you meet an exception).  The only exceptions to this rule are if you meet the 5 year rule & are disabled, dead, qualify for a first time home purchase, are taking 72(t) distributions, have qualifying medical expenses, using the money for college, you're paying medical insurance after losing your job or if the IRS is penalizing your IRA.\n\ncheck out page 60 of IRS Publication 590 (see the link) for all the information you could ever want to know about Individual Retirement Arrangements!  Have Fun!!!
449391
It is against the law to loan against an IRA.  You can either withdraw the money and pay the tax and penalty or leave it alone.  There does not exist a financial institution that will loan money on an IRA.
274365
A Roth IRA is an investment of after-tax money.  The current contribution limit is 4K a year.  You may withdrawl the money you have contributed at any time, for any reason without taxes or penalty.  \n\nAfter 5 years you may also withdraw the earnings for qualified expenses such as a first home purchase or educational expenses without penalty.  There are no age limits on your ability to make contributions to a ROTH IRA.  \n\nThe big advantage for younger investors of the ROTH IRA is that young people often have lower incomes and tax rates, so they will come out far ahead putting in money that they only had to pay low taxes on.
743638
Only if you are a first time home buyer, then you can use IRA funds without penalty (see http://www.irs.gov/taxtopics/tc558.html ).  \n\nBest wishes.
393236
It depends.  Do you have a Roth IRA?  You can use that money without a tax penalty.  A regular 401K through an employer will have some penalties usually.
1149314
If you do you will incur penalties for early withdrawal!! You must contact the company you have your 401k to arrange it. If you do not know ask your employer
533752
Yes.\n\nFirst of all, a rollover to another qualified plan or IRA is always without penalty or taxes, that's what a rollover is by definition.  The penalty applies when you take a DISTRIBUTION from the plan, not when you roll it over.\n\nSecondly, the age in question is 59 and a half, not 62.\n\nThird, in most cases, you'll need a triggering event, which is usually leaving your job.  Every plan is different.  In some, the triggering event is simply turning 55, at which case you can take your momney out while you're still working there.  All future contributions still would go into the plan.  Other plans allow for non-hardship in service withdrawals, which need no triggering event at all.  You can roll over your exisiting plan amount to an IRA, and again, your future contributions would still go into the existing plan.  Check with your HR department to see if your company allows this.  Hundreds already do, and more are writing it into the plan document every year.\n\nSo, in many ways, your answer is a resounding YES.\n\nHope this helps!\n--J.
453308
I just spoke to the principal of an international school about this last week.  His school has worked out a Roth with an office that is in a U.S. territory nearby.  The tax is prepaid so there's no tax or penalty paid at retirement.  Email a investor in the Mainland to see what they can offer.  Some offices are just ignorant of the law, as most folks are for most things like voting, taxes, shipping things to people who are abroad.  You may want to email an investment group someplace like the Virgin Islands, Guam, Puerto Rico...  They're more familiar with policies and retirement programs for Americans living outside the Mainland.
1049878
Yes, you may contribute to your company's 401(k) and max our your Roth IRA.  \n\nYour contribution limits to the 401(k) are $15,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $5,000 to your 401(k) plan.\n\nYour contribution limits to the Roth IRA are $4,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $1,000 to your Roth IRA.\n\nJust a reminder, almost all retirement contributions are subject to overarching limits set forth in IRS code Section 415. Please speak with a qualified tax advisor for more information before maxing out your 401(k) and Roth IRA.
826571
Individual Retirement Account, if your money is before taxes you can contribute to a traditional IRA, this means you earn interest on the untaxed money. You are taxed when you make take the money out at retirement. Roth IRA, you take money that has already been taxed and are able to draw from it at retirement, without taxes. This is rumored to have been named for Ira Cohen, an IRS actuary who was working with them back in 1974. You can go to just about any bank, credit union, or find a financial advisor to explain in detail all aspects, what is allowed, what is not allowes (such as drawing out your money before age 59.5).
100244
There is a 10% penalty for early withdrawal if not rolled into another tax-deferred account (i.e., another 401K or an IRA), plus the distribution is taxed as normal income.  The 10% that TaxCut is applying is for the 10% penalty.  The amount of the distribution then gets added into your total income, and the tax depends on whatever tax bracket you are in.  But the withheld amount shown on Box 4 of the 1099R gets counted as prepaid tax, so your total tax+penalties due will be decreased by the amount of tax already withheld at the time of the 401K withdrawal.  In your case, the 10% withheld pays for the 10% penalty, and then you still owe the regular income tax on the amount of the distribution.
320520
Absolutely though, you would need to check with a tax professional to determine whether the amounts deposited into your IRA are tax deferred or after-tax.  It all depends upon your income level.\n\nMax out your 401(k) contributions if at all possible. You're overall savings through the 401(k) far outweight the ultimate reduction in your "cash in hand" each pay check.
304477
Just fill out the form for lump sum distribution.  Please be aware you might be penalize for early withdraw and also consider the tax consequences.
195894
Even for early retirement IRA's can be useful. Rule 72T allows for withdrawals from IRA's before age 59 1/2 without the 10% penalty if withdrawals are substantially equal and based on the life expectancy of the account holder.\n\nAlternatively, a Variable Universal Life policy can be overfunded. The invested value will grow tax deferred and can be withdrawn at any time, for any reason. When withdrawals are structured properly, they are tax free. This option is ONLY worthwhile if there is also a need for life insurance coverage.
725173
First of all, 401(k) contributions and IRA contributions do not figure into itemized deductions.\n\nIf your joint income was over $85,000, you are not eligible to deduct anything for 2006 for an IRA contribution. Your participation in the 401(k) during the early part of the year cannot be undone. If your joint income is under $75,000, you may still make a deductible IRA contribution; and if it is over $75,000 but less than $85,000 the amount of the allowed deduction will be limited.
38552
No it is not to late to contribute to a Roth IRA for the 2005 year. You have intil April 17th this year. Because of the 15th falling on the weekend. Just remember do not contribute more than 3000 a person for the year otherwise there will be a penalty.