Pulling money from Roth pre 59.5

[Fermion]

I am starting to set up a Roth conversion ladder for future years when our taxable gets low or for some reason I don't want to realize gains in taxable.

Just to be sure I have this correct, here is an example.

I converted $7560 to a Roth from a IRA in Oct 2016. That account currently has grown to $128,350 (pretty good return). I can just take out the $7560 now and it is not reported for any type of tax or change to MAGI, correct? I just grab it and go if I need it?

I can't touch the remainder because that is growth.

This year I converted $8,000 to a Roth in December to meet MAGI for ACA. I can take that money out in Jan 2026 the same way? (hope it has grown to $128,000!)

I have this correct?

 

[NgineER]

I am starting to set up a Roth conversion ladder for future years when our taxable gets low or for some reason I don't want to realize gains in taxable.

Just to be sure I have this correct, here is an example.

I converted $7560 to a Roth from a IRA in Oct 2016. That account currently has grown to $128,350 (pretty good return). I can just take out the $7560 now and it is not reported for any type of tax or change to MAGI, correct? I just grab it and go if I need it?

I can't touch the remainder because that is growth.

This year I converted $8,000 to a Roth in December to meet MAGI for ACA. I can take that money out in Jan 2026 the same way? (hope it has grown to $128,000!)

I have this correct?

I think you have it just about right. The withdrawal of the contributions is tax free and does not count towards MAGI. I believe you have to report it on Form 8606 part III.

If you will be 59.5 before 2026 you could potentially withdraw it before then.