topic I have a Roth IRA account with $700 in from my first job. I want to withdraw instead of add to current IRA. No penalties from my bank. Will the IRS charge me penalties? in Retirement tax questions

I have a Roth IRA account with $700 in from my first job. I want to withdraw instead of add to current IRA. No penalties from my bank. Will the IRS charge me penalties?

Welm126 — Tue, 10 Mar 2026 05:47:41 GMT

Re: I have a Roth IRA account with $700 in from my first job. I want to withdraw instead of add to current IRA. No penalties from my bank. Will the IRS charge me penalties?

SundayInSalem — Thu, 25 Aug 2022 00:42:44 GMT

It depends on how old you are and how long you've had your Roth. If this is a Designated Roth 401(k) through your job then any employer match will be taxable. IRS doesn't allow employer matches to be deposited into a Designated Roth 401(k). They are in a pre-tax 401(k), meaning contributions and earnings will be taxed on withdrawal.

Contact your bank. They can probably tell you whether your withdrawal would be taxable.

As for your contribution, Investopedia has a good explanation at What Are the Roth 401(k) Withdrawal Rules?

Re: I have a Roth IRA account with $700 in from my first job. I want to withdraw instead of add to current IRA. No penalties from my bank. Will the IRS charge me penalties?

Opus 17 — Thu, 25 Aug 2022 16:14:33 GMT

An IRA is a private arrangement that you set up with a bank or broker. If this is an account from a job, it is likely a 401(k) or 403B, or some other type of workplace plan.

When you terminate service with that employer, you have the option of rolling over the funds into a private IRA or into the workplace plan of your new employer. Rollovers are tax-free. If this is a designated Roth 401(k) account, you would have to roll it over into a Roth IRA or a designated Roth account at the new employer.

If you want to cash out, you can withdraw the original contributions tax free, and you will pay income tax and a 10% penalty for early withdrawal on any earnings.