BTravlin
Full time employment: Posting here.
- Joined
- May 18, 2010
- Messages
- 996
My DW has a small ROTH IRA that was started 3 years ago. We are now looking at starting a new 403b ROTH account for her. It is my understanding that you pay no penalties for early withdrawals provided the money has been invested for a minimum of 5 years. Now the question. I understand you can withdraw penalty free from any of your ROTH accounts provided the first one established is at least 5 years old. Is this correct?
In other words, can we make penalty free withdrawals from the new ROTH account 2 years from now since her initial ROTH account will have been established for 5 years by then?
Basically, we are 401k and 403b rich but relatively free cash poor. We're looking at cutting her contributions to the 403b and saving more in ROTH so we will have another option for spendable cash when we FIRE 3 years from now.
In other words, can we make penalty free withdrawals from the new ROTH account 2 years from now since her initial ROTH account will have been established for 5 years by then?
Basically, we are 401k and 403b rich but relatively free cash poor. We're looking at cutting her contributions to the 403b and saving more in ROTH so we will have another option for spendable cash when we FIRE 3 years from now.