Cashing out a Roth IRA penalty???

• ott75

  Anyone know right off the top what is going to be my penalty?
• wes_mantooth

  

  10%
  
  http://www.your-roth-ira.com/roth-ira-penalties.html
• thePITman

  

  If you are cashing out less than what you have invested, there is no penalty. There is only a penalty if you have made a profit and will be cashing out all of what you invested PLUS some of that profit.
• tigerballonline

  You will also pay 20% federal tax
• ott75

  So if I invested 1000 and have made 300 profit, I can take out the 1000 with what expectation of penalty?
• rip34

  http://www.kiplinger.com/basics/archives/2003/03/IRAs6.html
  
  Should answer your question.
• eersandbeers

  tigerballonline wrote: You will also pay 20% federal tax

  Shouldn't on a Roth. You paid taxes before the money went in.
  
  
  It also depends on the reason you are taking the money out. Most financial firms have some type of hardship clause that will allow you to take out your money without penalty.
• Con_Alma

  ott75 wrote: So if I invested 1000 and have made 300 profit, I can take out the 1000 with what expectation of penalty?

  
  That's correct. You have already paid tax on your principle and may withdraw it at any time. You may not withdraw the earnings for a period of 5 years and age 59 1/2.
• tigerballonline

  My bad, I did not know that about a roth IRA. I knwo I just received my profit sharing check from my last job, and I would pay out 30% if I withdrew any money.