What are the Roth IRA withdrawal rules?

You need to know, especially if you plan on withdrawing money from a Roth any time in the near future.

The cost of ignorance, in the form of unexpected taxes or penalties, could be quite high.

So to make sure this doesn’t happen to you, it’s essential to make sure any withdrawal is a “qualified distribution.”

Why?

Because a qualified distribution is free of both taxes and penalties…

That’s nice, you say.

So what’s a qualified distribution?

While that’s a more in-depth discussion, all you need to know for now are the following points:

• You can always withdraw your principal penalty-free
• Usually earnings can NOT be withdrawn before age 59