what is the penalty for withdrawing from a roth ira
There is no penalty for withdrawing Roth IRA contributions, only earnings. A withdrawal is considered early if made before the contributor reaches age 59.5. Penalties are not to be confused with ordinary income tax applied to non-qualified distributions.f you use the withdrawal to purchase your first home, the money is penalty-free. This applies to a maximum of $10,000, and the money must be used within 120 days. Also penalty-free are withdrawals made to pay for qualified educational expenses.