do you pay a penalty on withdrawal from a roth ira
Now that you're properly chastised, if you do need to take a withdrawal, some hardship situations qualify for a penalty exemption from an IRA or a 401(k) plan. Note that penalty-free does not mean tax-free. All traditional IRA and 401(k) withdrawals require that you pay taxes at ordinary income rates. Contributions to a Roth IRA can be taken out at any time, and its earnings may be withdrawn penalty and tax-free after five years. The same rules apply to a Roth 401(k),but only if the employer plan permits.