Rules for liquidating roth ira
That means you’re taxed on the funds now, as you put them in.
For a long-term tax strategy, this could be very useful.
In both cases, the Internal Revenue Service (IRS) might charge income tax on IRA withdrawals — plus an additional 10 percent penalty — if you are younger than 59 ½ years old [source: IRS].
But what if you need the cash that you've stashed away for retirement right now?
Unlike distributions from Traditional or Rollover IRAs, withdrawals from a Roth IRA are subject to distribution ordering rules.The information presented here is based on current interpretations of the law and isn’t guaranteed beyond the current tax year. Also remember, all investing involves risk, so there’s no guarantee you’ll reach your investment goals.Neither Nationwide nor our representatives give legal or tax advice, so consult your attorney, legal or tax advisor about these questions.Another nice bit of flexibility: you don’t have to begin withdrawing from your Roth IRA at 70½ as you do with a traditional IRA.You can leave your earnings in your account to continue growing income-tax free as long as you live.