Dear Jason – February 2021
In 2020 I had to withdraw $20,000 from my Roth IRA. Will I have to pay tax on this distribution?
If you have had your Roth IRA for at least 5 years, you can withdraw your contributions without penalty at any age. So if you contributed $5,000/year for 10 years you would have contributed $50,000. The account may have grown to $90,000. The $50,000 that you contributed can be withdrawn without any tax effect.