Can I withdraw my contributions from a Roth IRA without a penalty?

Question

For 2008, whatever I have contributed, can I withdraw that money without being penalized for taking it out early. I am not 59 1/2 years old. I have made some gains on what I contributed with, I know I would be penalized if I withdraw those gains. So...would there be a penalty?

Answer 1

You can take out an amount equal to your total contributions without penalty or taxes. But if you take out an amount over your total contributions, you will pay a fee of 10%.

Answer 2

No! That's the wonderful thing about Roth IRS's and Roth 401k's you don't get hit with paying penalties or taxes on it like you would if you had a traditional IRS or 401k.

Answer 3

(if you mean contributions made after Jan 1 2008) Then, No...

As per the IRS Publication 590 page 65:

"If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions."

Be advised....that the financial institution may have its own penalties that have nothing to do with IRS' penalties.