If you are under 59 1/2, and do NOT withdraw more than original contributions ("basis"), AND it has been over 5 years since that amount (being withdrawn) was contributed, then you should NOT have ANY penalties (or taxes), withdrawing from a Roth Ira?
"You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the Ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from Conversion and rollover contributions, on a first-in, first-out basis and finally from Earnings on contributions."
Someone, in a bank, told me that if I am under 59 1/2, the Withdrawal comes from Earnings FIRST, which means there is a 10% tax penalty and under-age penalty. Which "Ordering Rules" are correct?
