The rules for Roth IRA withdrawals depend on the ages of the account owner and the account itself, explains Charles Schwab. People who are 59 or younger may face a 10-percent penalty for Roth IRA distributions, explains Fidelity. As of 2014, there aren't penalties for withdrawals between the ages of 59 1/2 and 70, although there are penalties for not withdrawing once the owner reaches 70 1/2 years old.Know More
People of any age may withdraw from a Roth IRA without additional penalties if the account is older than five years and the payment is intended for certain approved purchases, such as a first-home purchase, medical bills and insurance while unemployed, and qualifying educational expenses, explains Fidelity.
Those who are 59 years old and younger face a 10-percent penalty if not using the Roth IRA distribution for approved types of purchases, explains Charles Schwab. Those who are 59 or younger who are withdrawing from a Roth IRA account that is less than five years old face additional taxes as well as potential penalties.
Withdrawals made by an account owner who is between 59 1/2 and 70 years old are not subject to penalties. However, taxes still apply to distributions from Roth IRA accounts that are less than five years old, says Fidelity.
Once an account owner reaches 70 1/2, withdrawals from a Roth IRA are mandatory. Owners who fail to withdraw the minimum required distribution incur extra penalties, explains Fidelity.Learn more about Financial Planning
Basic guidelines on the rules for Roth IRA plans are available from the website of the Internal Revenue Service. The site details information on contribution limits for those filing jointly, separately or as a head of household.Full Answer >
The minimum deposit to open a Roth IRA depends on the account provider, according to Zacks. Although some providers may have no minimum deposit requirement, the investor must earn money to contribute to an IRA and cannot contribute more than her total earnings, according to Bankrate.Full Answer >
Open a Roth IRA at a credit union by filling out the application for the account online or on paper, states Zacks Investment Research. Provide a name, Social Security number and other personal information, sign and date the form, and submit along with an opening deposit.Full Answer >
A spousal Roth IRA is an account specifically created for a non-working spouse. According to RothIRA.com, a working spouse can contribute to a non-working spouse's Roth IRA as long as it is opened under the non-working spouse's name and Social Security Number.Full Answer >