In general, yes. You can take it out Tax free the amount you put in a Roth IRA, but there's a penalty of 10% if you take it out before 59 1/2. Plus, any earnings/interest you make could be taxed even if withheld from your investment institution for withdrawing early. Also, excess contributions penalties.
Example:
I put in 10,000 into a Roth IRA and have qualifying income (the limit is $6,000; unless you are over 50 it's $7,000 to a Roth IRA). I take out $1,000 before I am 59 1/2 at tax time. Unless an exception applies from the interview questions it'll tax you for excess contributions, early withdrawal, and possible institution earnings like interest earned. The excess contribution, it sounds like, has already been removed you put in year 2022; the tax law allows until April 18, 2023, for the 2022 tax year to withdraw any earnings in addition to the principal amount associated with the excess contribution. If you have medical expenses that exceed 7.5% of your AGI, you can take the excess of (7.5%) and enter the amount as an exception. If you are permanently disabled as defined by the IRS this could also be an exception, among others. Once you enter the form, the interview will take you through the questions and TurboTax will see how we can save you the most money, with things like higher education withdrawals and more from your Roth IRA trying to save you on things like early withdrawals for qualified expenses and deductions. Be sure to have receipts or proof of expenses when entering information for your records and recordkeeping.
@rhonda1215patton
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
