What should I know about unemployment and my IRA?

Answer by  JohnC (131)

If you are unemployed you can withdraw money from your IRA without it counting as earned income as long as the amount withdrawn is less than the amount of money you have contributed to the IRA. However, remember that once you withdraw money from an IRA you cannot re-contribute it beyond the yearly contribution limits.

Answer by  uncleal (81)

If you do not have enough money coming in and you have a standard IRA,you may withdraw from your IRA before you are eligible to but there will be be penalties to pay, plus the tax that you deferred. If it is a Roth IRA you may withdraw what you put in without penalty.

Answer by  notto (73)

Contributions to an IRA cannot exceed earned income. Unemployment payments are not considered earned income and so won't count toward the amount you are eligible to contribute.

Answer by  JohnAndrew (199)

You can withraw from your IRA if you unemployed and not have it count as income, as long as the amount withrawn does not exceed the amount you have contributed.

Answer by  ksmitley (11)

If you are unemployed, you may contribute to your IRA. You cannot withdraw from your IRA if you are unemployed and under 59 1/2 years of age without a penalty.