You can always withdraw the money you have contributed to a Roth IRA without paying taxes on the withdrawal because you have already paid taxes on the original contribution. If you are younger than 59 and a half years old and opened your Roth IRA at least five years ago, you can also withdraw up to $10,000 of your Roth IRA earnings (that is, money earned from your contributions) without paying any taxes on the earnings as long you:Earned less than $100.000 the previous yearAre currently marriedMoved out of your parents' home in the last 12 monthsWere Employed at the time of the withdrawalAre Buying your first home

Question

Parker Vincent

Business

4 January, 15:31

You can always withdraw the money you have contributed to a Roth IRA without paying taxes on the withdrawal because you have already paid taxes on the original contribution. If you are younger than 59 and a half years old and opened your Roth IRA at least five years ago, you can also withdraw up to $10,000 of your Roth IRA earnings (that is, money earned from your contributions) without paying any taxes on the earnings as long you:Earned less than $100.000 the previous yearAre currently marriedMoved out of your parents' home in the last 12 monthsWere Employed at the time of the withdrawalAre Buying your first home

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Answers (1)

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Felicity Whitehead · Answer 1

The correct answer is letter "E": are buying your first home.

Explanation:

Roth IRAs are tax advantage retirements accounts that allow withdrawals free of taxes. This happens since taxes are paid at the moment when the funds are being deposited in the account. To make withdrawals, certain requirements must be met. In the first place, the account must be 5 years old or older. If so, only qualified life events will make the withdrawal possible such as:

Turning 59 1/2 years old Permanent disability Passing away (beneficiaries will be in charge of the withdrawal) Buying, building or repairing your first home (maximum withdrawal of $10 000).