Home loans

How did you "put" $25,000 into a Roth 2 years ago since the maximum Roth contribution per year was $5,500 ($6,500 of over age 50)?     Was it a rollover or conversion?

 

Assuming that the $25,000 was your own after-tax contributions:

 

There is a 5 year Roth rule that says that any earnings withdrew are subject to a 10% early distribution penalty unless you have owned ANY Roth IRA account for at least 5 years - the first home exception does not overreact the 5 year rule.

 

However, you can ALWAYS withdraw any of your own prior contributions at any time without any tax or penalty since Roth contributions are after-tax money to start with.   If the $25,000 are your previous contributions and not earnings, then that that can be withdrawn at any time, for any purpose, with no tax consequences at all.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**