What considerations should I make when cashing out my roth IRA?

Answer by  tamarawilhite (17883)

If you take withdrawls from a cashed out Roth IRA, you will owe income taxes on the growth of the contributions unless you are over 59 1/2 or are disabled and not able to work. The only exception is if you take out the value of the original contributions to buy a house or go to school.

Answer by  Chaneygirl (1755)

The original contributions come out tax free, but the earnings may be taxable. Do you know how much of the IRA is contributions vs earnings? Are you over 59 1/2? Do you have other retirement monies to replace these after you withdraw?

Answer by  HawaiianGirl (6906)

Be sure to only cash it out if you really need the money and have no otehr choice. It's always best to leave it in to avoid penalties.

Answer by  km8738 (1917)

You're going to want to make sure that you are of age and that you will not be incurring any early withdrawl penalties, which basically nullify all gains.