Forth ROTH IRA, do we need to wait 5 years to withdraw the original/contribution (NOT earnings)? I thought the 5 year rule only applies to earnings and NOT original principle but I hear mixed stories. I need some clarification.
For example, if I contribute 6000 in 2019 , by 2020 my account grow to 7000. In 2020 I take out only 6000 leaving the 1000 earning in the account . The 6000 (principle) should be tax and penalty free right?
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Correct. You can receive a distribution of your original $6,000 of contributions at any time, tax and penalty free.
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