Re: Roth IRA's
1) The way I understand it the 5-year period refers to how long the Roth IRA account needs to be open (not how long you need to hold individual stocks/equities), -before any withdrawals (of profits) can be made without penalty.
You can take out your original investment money from a Roth IRA account at any time (without penalty), -but if you do that, you can't just put it back again. New Roth IRA contributions can only be made on an annual basis.
2) The age 70 1/2 required minimum distribution rule applies to many other IRA accounts, but not to Roth IRA's:
1) The way I understand it the 5-year period refers to how long the Roth IRA account needs to be open (not how long you need to hold individual stocks/equities), -before any withdrawals (of profits) can be made without penalty.
You can take out your original investment money from a Roth IRA account at any time (without penalty), -but if you do that, you can't just put it back again. New Roth IRA contributions can only be made on an annual basis.
Quote:
The five-year rule for Roth IRA withdrawals of investment earnings requires that you hold your account for at least five years before you can tap those earnings without incurring a penalty. ... If it's not, you may be liable to pay taxes and a 10% penalty on the earnings portion of your distribution.
2) The age 70 1/2 required minimum distribution rule applies to many other IRA accounts, but not to Roth IRA's:
Quote:Required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 1/2. The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. This rule does not apply to your Roth IRA.
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