kimberly opened a roth ira november 13,2016 she has made regular deposits and would like to...

kimberly opened a roth ira november 13,2016 she has made regular deposits and would like to know the earliest date she can withdraw some money in a qualified distrubition.her date of birth is september 17,1961

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Expert Solution

Money can be withdrawn from Roth IRA at any age without any tax or penalty as qualified distribution but only if it is limited to the extent of contributions made.

Because in order to withdraw earnings from account as a qualified distribution, 2 conditions must be satisfied:
- You must be of 59(1/2) years of age
- minimum 5 years have passed since the first contribution made to Roth IRA.

In our case, it is said that Kimberly wants to withdraw 'Some' money in a qualified distribution, now if we assume that her withdrawals are limited to actual contributions made by her, than she can withdraw anytime she wants after date of opening her account and making her contributions. However if she withdraws any part of income over and above her contributions without meeting the above conditions, then her withdrawals will become Non- qualified distribution. That cannot happen before year 2021 for Kimberly.

(If there are any questions, kindly let me know in comments. If the solution is to your satisfaction, a thumbs up would be appreciated. Thank You)

ekkarill92 answered 1 year ago

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