Date: Sun, 4 Jan 2004 13:46:30 CST
From: "Brent D. Gardner, ChFC" 
Newsgroups: misc.invest.financial-plan
Subject: Re: ROTH as an emergency fund - revisited
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"Mark0Young"  wrote in message
news:20040103121736.07346.00002361@mb-m26.aol.com...
> Not according to the IRS! There is NO 5-year period for removing
regular
> contributions from a Roth IRA.
>
> You can remove the regular contributions from a Roth IRA at any
time,
> for any purpose, no tax, no penalty. (The actual investments may impose
> contingent deferred sales charges or surrender charges or the like, but
those
> are imposed by those specific investments, not by the tax laws.)
>
> Now when it comes to earnings or conversions, there are
5-year
> periods involved and the rules are more complicated (e.g., for tax-free,
> penalty-free withdrawal of earnings, one way would be to have a Roth IRA
for at
> least 5 years and be at least 59.5 years old).
>
> See IRS Publication 590 for more information.

Good job, Mark. Back when the Roth was first introduced, there was a LOT of
misinformation about pre-59.5 withdrawals, and the Service wasn't exactly
forthcoming with clarifications for quite a while. I can remember some
investment and insurance companies waiting six months or more, before
finally allowing accounts to be opened, because of the confusion on
pre-retirement taxation, and/or penalites, if any.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.