SavingsTalk.com

getnick · 08-17-2006, 08:48 PM

What is a Roth IRA:
Roth IRAs were created by the Taxpayer's Relief Act of 1997, effective January 1, 1998. Contributions to the Roth IRA are nondeductible to the individual. Contribution can be made by an individual as long as he/she has earned income and satisfies the adjusted gross income limit. Contributions can be made by an individual who is older than age 70. and who would be restricted from making a contribution to a traditional IRA.

Tax Benefits:
Although the contributions are not deductible, the account holder will have the ability to withdraw funds tax-free under certain conditions. "Qualified distributions" from Roth IRAs are not subject to taxation penalties. Basically, since you contribute with after tax dollars, you can withdraw tax free. You are not subject to a double taxation.

Roth IRA Contribution Limits:
YEAR Under Age 50
2005 $4,000
2006 $4,000
2007 $4,000
2008 $5,000
2009 $5,000

There is no minimum age for making IRA contributions. However, state law requires IRA prospects to have reached the age of majority to establish and IRA on their own. The minor's legal guardian must sign for the account until the minor reaches the age of majority for their state.

The maximum income for single tax filing is $101,000 and for joint filing is now $159,000.

briansol · 03-19-2008, 05:48 AM

i beleive i read 2008 is going to be 5k, not 4k

getnick · 03-19-2008, 06:28 PM

Quote:

Originally Posted by briansol

i beleive i read 2008 is going to be 5k, not 4k

you are correct and the post is updated.

pollards24 · 12-03-2009, 04:59 PM

hello, question, i have contributed 10k into my roth ira. its only worth 7800. can i withraw the full the 7800 without penalty? i have no profit/income from this, only loss. are there still fees or penalties?

briansol · 12-04-2009, 04:34 AM

There's a ton of rules regarding this....
Fool.com: All About IRAs - The Roth IRA Withdrawals
Roth IRA early withdrawals and penalties - Fool.com

Since you lost, you won't have taxes to pay on the earnings as there are none
And you are allowed to pull your initial contribution amounts, so long as its been there for 5 years or more with no taxes or penalties.

So, it looks like you are in the clear, as long as the money has been there for 5 years. I would definitely consult with the holder of your roth to find out the exact fees and terms the money has been there for.

pollards24 · 12-07-2009, 09:40 PM

thanks for your time and help!

08-17-2006, 08:48 PM	#1
getnick Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 747 Rep Power: 5	What is a Roth IRA? What is a Roth IRA: Roth IRAs were created by the Taxpayer's Relief Act of 1997, effective January 1, 1998. Contributions to the Roth IRA are nondeductible to the individual. Contribution can be made by an individual as long as he/she has earned income and satisfies the adjusted gross income limit. Contributions can be made by an individual who is older than age 70. and who would be restricted from making a contribution to a traditional IRA. Tax Benefits: Although the contributions are not deductible, the account holder will have the ability to withdraw funds tax-free under certain conditions. "Qualified distributions" from Roth IRAs are not subject to taxation penalties. Basically, since you contribute with after tax dollars, you can withdraw tax free. You are not subject to a double taxation. Roth IRA Contribution Limits: YEAR Under Age 50 2005 $4,000 2006 $4,000 2007 $4,000 2008 $5,000 2009 $5,000 There is no minimum age for making IRA contributions. However, state law requires IRA prospects to have reached the age of majority to establish and IRA on their own. The minor's legal guardian must sign for the account until the minor reaches the age of majority for their state. The maximum income for single tax filing is $101,000 and for joint filing is now $159,000. Last edited by getnick; 03-19-2008 at 06:30 PM.

12-04-2009, 04:34 AM	#5
briansol Administrator Join Date: Aug 2006 Location: Central CT Age: 29 Posts: 696 Rep Power: 10	There's a ton of rules regarding this.... Fool.com: All About IRAs - The Roth IRA Withdrawals Roth IRA early withdrawals and penalties - Fool.com Since you lost, you won't have taxes to pay on the earnings as there are none And you are allowed to pull your initial contribution amounts, so long as its been there for 5 years or more with no taxes or penalties. So, it looks like you are in the clear, as long as the money has been there for 5 years. I would definitely consult with the holder of your roth to find out the exact fees and terms the money has been there for. __________________ Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

03-19-2008, 05:48 AM	#2
briansol Administrator Join Date: Aug 2006 Location: Central CT Age: 29 Posts: 696 Rep Power: 10	i beleive i read 2008 is going to be 5k, not 4k

12-03-2009, 04:59 PM	#4
pollards24 Greenhorn Join Date: Dec 2009 Posts: 2 Rep Power: 0	hello, question, i have contributed 10k into my roth ira. its only worth 7800. can i withraw the full the 7800 without penalty? i have no profit/income from this, only loss. are there still fees or penalties?

12-07-2009, 09:40 PM	#6
pollards24 Greenhorn Join Date: Dec 2009 Posts: 2 Rep Power: 0	thanks for your time and help!

SavingsTalk.com

Your guide to saving money and making smart investments!