LemmyKnowsBest@lemmy.world to Personal Finance@lemmy.mlEnglish · edit-29 months agoIf I start a Roth IRA in a couple weeks, and keep contributing $7k per year to it, for years & decades, When will it pay off? When can it be money for me to spend?message-squaremessage-square5fedilinkarrow-up113arrow-down10file-text
arrow-up113arrow-down1message-squareIf I start a Roth IRA in a couple weeks, and keep contributing $7k per year to it, for years & decades, When will it pay off? When can it be money for me to spend?LemmyKnowsBest@lemmy.world to Personal Finance@lemmy.mlEnglish · edit-29 months agomessage-square5fedilinkfile-text
minus-squareUsually_Lurker@lemmy.worldlinkfedilinkEnglisharrow-up8·9 months agoYou can take the principle out without penalty. Profits need to wait until 59 1/2 to be penalty free. https://www.your-roth-ira.com/withdrawing-roth-ira-principal.html
minus-squareFermion@feddit.nllinkfedilinkEnglisharrow-up6·9 months agoAs a note, you can’t “borrow” from a roth. So if you withdraw principle, you’re limited by the max contribution rate in building up the principle again. So while it’s penalty free, there are limitations to keep in mind.
You can take the principle out without penalty. Profits need to wait until 59 1/2 to be penalty free.
https://www.your-roth-ira.com/withdrawing-roth-ira-principal.html
As a note, you can’t “borrow” from a roth. So if you withdraw principle, you’re limited by the max contribution rate in building up the principle again.
So while it’s penalty free, there are limitations to keep in mind.