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Ask The Expert: Withdrawals

Q:
Asked by Erik 11/28/15

I had a regular IRA that I rolled into an Roth, and paid the taxes on it. Since then it has grown dividends etc. I would like to take out the original amount that I paid taxes on to purchase a second home. Can I do this without penalty?

A:
Answered by John Baumer 12/1/15
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77 out of 77 people found this useful.

Yes. You may withdraw your principal investment in a Roth IRA at any time and use those funds to purchase a home. That’s one of the big advantages of a Roth IRA. Additionally, you won’t pay taxes on withdrawals of your earnings as long as you’ve reached age 59 1/2 and have met the 5 year holding period requirements.

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