Are there any tax penalties for closing a Roth IRA?

Answer by  Att4372 (1704)

Depends when and how you close it. If you are under 59 1/2, a 10 percent penalty is due on amount withdrawn. If you close an IRA in one financial institution and move the money to another, it's a transfer so no penalty. If you take income out within 5 years of opening the account, tax is due.

Answer by  dialfoust (220)

Not if you have held it for 5 years, are over the age of 59 1/2 years or you are disabled.

Answer by  BookMonger (147)

If the amount in the account is less than the money you deposited, the penalties will be negated. B. ut there is early withdrawal penalty before age 59 and 1/2.

Answer by  Att4372 (1704)

If under 59 1/2, there is a 10 percent penalty on all earnings (value minus contributions). At any age, earnings are taxable is account is under 5 years old.

Answer by  worker2746 (2434)

Depending on your age when you close it out there are major penalties for closing these out. There are some exceptions to this rule.