2008 Roth IRA Contribution Limits

2008 Roth IRA Distribution

Roth IRA withdrawals are divided into two main categories: Distributions (qualified and unqualified) and withdrawal of capital. You can withdraw the amounts you put in (your capital) tax and penalty free at any time. Earnings or gains in excess of your principal contributions are subject to distribution rules. Qualified distributions are any amounts withdrawn after having been in your Roth IRA for 5 years and you are at least 59 1/2 years old or you are disabled or buying your first home or made to you as a beneficiary of a deceased Roth IRA owner.

Most other distributions are considered unqualified distributions and you will likely owe a 10% tax penalty. Required minimum distributions (RMD) do not apply to a Roth IRA. However, you can not use distributions from your Roth IRA to satisfy required minimum distributions, RMD, for your traditional IRA.

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