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Is there a benefit to opening a new Roth IRA in 2006 vs 2007? Archived From: Finance

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alert mods    
   posted: Jan. 1, 2007 @ 6:06p

Since your Roth IRA contributions have already been taxed, you can take them back without penalty. Earnings have to be kept until retirement without substantial penalties...

One thing to keep in mind is that you are quite close to the Roth limit based on your income. If you and your wife file jointly, the gross income limit is 160k for a full contribution and 150k for a partial. This assumes your wife earns no money...

If you didn't count that 20 grand you made on the house towards your income or your wife has a job, then you are at 160k earnings and cannot contribute to a Roth...


alert mods    
   posted: Jan. 1, 2007 @ 7:38p

All the money I made on the house sale was rolled into a more expensive house. Hard to explain but the 20K is left over.

My income is fixed at 140K and will possibly go down slightly. My wife makes no money so I'm good there. It's good to hear that I can withdraw Roth principal in a pinch without penalty.


alert mods    
   posted: Mar. 2, 2007 @ 1:28p

You really shouldn't be withdrawing from your 401k or your IRA unless you're retiring or have some serious financial emergency. Withdrawn funds are lost opportunities for Roth IRA assets to grow tax free.


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