In certain cases, you may even withdraw your money before retirement without taxes and penalty. Traditional IRAs and Roth IRAs Feature Traditional IRA Roth IRA Eligibility Must have Earned Income. Must have Earned Income. May be Tax Deductible. Distributions Fully taxable as ordinary income.
Distributions are never mandatory.
In the note section of the form ask for a Roth IRA conversion analysis. Your Roth IRA funds must be at least five years old. A first-time homebuyer is defined as someone who has not owned a home in the past two years. The Roth IRA provides an incredible new estate-planning opportunity to keep your pension money for you and your family and out of the hands of Uncle Sam. It gives you the advantage to accumulate more wealth, and to distribute it tax-free to your heirs.