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Re: Using your Roth as part of your emergency fund--good idea?
Old 05-17-2007, 11:03 AM   #7
Dryer sheet wannabe
 
Join Date: Mar 2006
Posts: 24
Quote:
Originally Posted by SecondCor521
One drawback to consider is that if you do have an emergency and do withdraw principal from the Roth, the funds you withdraw cannot be replaced, and all future tax-free compounding of those funds within the Roth will have been lost forever.

2Cor521
Yes, but the resulting Roth balance would not be any less than if the money had been put into the non-Roth emergency fund to begin with.
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