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New Member
posted Jul 10, 2025 9:36:30 PM

ROTH IRA early withdrawal taxes even if my withdrawal would be less than contributions and gains combined

So I pretty much deposited $1,000 into a Roth IRA and over the course of about 6-8 months the ETF I had it in has an unrealized loss of about $100 but I kept getting dividends so my portfolio is sitting at $1,030 if I were to early withdraw the entire account what are the tax implications if any would their be?

0 2 2586
2 Replies
Level 15
Jul 12, 2025 1:25:04 PM

if you are over 59.5 years old and the Roth has been open for 5 calendar years, there are no tax implications.

 

Otherwise, the $30 is ordinary income to be reported on your tax return.  The IRS assumes the first $1,000 was your original contribution (which was after-tax money) and the remaining $30 is earnings.  It's that simple.  

 

If you are under 59.5 years old, the $30 is subject to a 10% tax penalty, unless an exception applies. 

Level 15
Jul 14, 2025 6:50:17 AM

The only thing that counts with any IRA is how much did you contribute and how much did you withdraw.  Gains and losses that happen inside the IRA are ignored.  If you deposited $1000 and withdraw $1030, then the $30 is "earnings" and is taxed according to your age.  It does't matter where the $30 came from.