topic Re: Withdrawing On A Roth IRA in Community Chat

Withdrawing On A Roth IRA

cuddlesmama — Sun, 26 Aug 2018 10:00:24 GMT

What is the best way to withdraw a Roth IRA? All at once or monthly or is ther another way. I am retired an would liketo start withdrawing on it. any suggestions? TIA

Re: Withdrawing On A Roth IRA

CelticCrafter — Sun, 26 Aug 2018 10:26:06 GMT

For me it would come down to whether or not there was a monthly

fee involved.

If they were going to charge me every month to make a withdrawal then I would take it on an annual basis.

Re: Withdrawing On A Roth IRA

OKPrincess — Sun, 26 Aug 2018 10:48:26 GMT

We have most of our investments with a financial investment company for several years.

When we retired, we devised a plan to receive 2 distributions a month. This is in additional to our social security checks.

The amount for the year, including taxes and fees, is set aside from everything else and our distributions are made from this account. Then it starts over the next year.

Re: Withdrawing On A Roth IRA

FrostyBabe1 — Sun, 26 Aug 2018 11:32:45 GMT

Please, please talk to the custodian of the account (brokerage firm) or your advisor to determine what the best course of action is for you. This is NOT the place to get this kind of advice.

Re: Withdrawing On A Roth IRA

pachutabelle — Sun, 26 Aug 2018 12:23:02 GMT

If you don't need the whole amount now, I would take a monthly withdrawal so that the remainder continues to compound interest. Depends on your circumstances.

Re: Withdrawing On A Roth IRA

Mom2Dogs — Sun, 26 Aug 2018 12:25:10 GMT

There are rules and tax implications, get the advice of a professional. Since it is a roth, there may not be tax issues but I would still talk to a pro. DH is over 77 and we have been withdrawing his traditional IRA's since he was 70.5 (I think that is the mandatory year)....we have not needed the money yet so we just reinvest the money.

Re: Withdrawing On A Roth IRA

OKPrincess — Sun, 26 Aug 2018 12:32:10 GMT

@Mom2Dogs wrote:
There are rules and tax implications, get the advice of a professional. Since it is a roth, there may not be tax issues but I would still talk to a pro. DH is over 77 and we have been withdrawing his traditional IRA's since he was 70.5 (I think that is the mandatory year)....we have not needed the money yet so we just reinvest the money.

Per our financial advisor, we must take a certain amount out at age 70. Not sure until we get there. Good luck.

Re: Withdrawing On A Roth IRA

SharkE — Sun, 26 Aug 2018 13:01:09 GMT

First thing to be worried about is the IRS. They have their hand in your pocket from cradle to grave. Ask whomever about the tax related to it.

We pay taxes on money U make ,pay it again on that money invested, if anything you invested, now being withdrawn, pay it again. Death & taxes,you

can count on

Re: Withdrawing On A Roth IRA

Caffeina — Sun, 26 Aug 2018 14:24:22 GMT

It depends on your finances, age, what type of Roth account your money is in, etc. Talk to a trusted family member, friend, or a professional.

Re: Withdrawing On A Roth IRA

Carmie — Sun, 26 Aug 2018 14:38:10 GMT

@SharkE wrote:
First thing to be worried about is the IRS. They have their hand in your pocket from cradle to grave. Ask whomever about the tax related to it.

We pay taxes on money U make ,pay it again on that money invested, if anything you invested, now being withdrawn, pay it again. Death & taxes,you
can count on

There are no taxes involved with a Roth IRA, just a Traditional IRA, so no worries about the IRS being in your pocket.

i have noticed that the withdraw fees can be quite high. The investment companies make a fortune from retiree savings.

i agree that the OP should investigate and see what would be the least expensive way to take the withdraws. You must start withdrawing at age 70 1/2 or the penalties for not doing so are very steep.

Re: Withdrawing On A Roth IRA

FrostyBabe1 — Sun, 26 Aug 2018 14:57:23 GMT

You do NOT have to start taking money out of a ROTH IRA at age 70.5. Traditional IRA's and 401(k)/rollovers have minimimum distribution age thresholds, but not the ROTH.

https://www.rothira.com/blog/comparing-retirement-accounts-at-what-age-do-you-have-to-begin-to-withdraw-funds

The account also has to have been open for at least 5 years, regardless of age, or you'll pay taxes. You may avoid penalties, but not taxes.

https://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/roth_ira/withdrawal_rules

This is why it's so important to consult a professional rather than random strangers on a shopping forum! So much bad info. Well intended, but bad.

Re: Withdrawing On A Roth IRA

Equuleus — Sun, 26 Aug 2018 15:45:31 GMT

@FrostyBabe1 wrote:
Please, please talk to the custodian of the account (brokerage firm) or your advisor to determine what the best course of action is for you. This is NOT the place to get this kind of advice.

I agree ... while this place gives lots of good information on a variety of things, health and financial information should not be sought here (or given). Why inidivuals ask personal advice here on such important matters is beyond me.

Re: Withdrawing On A Roth IRA

Carmie — Sun, 26 Aug 2018 15:48:32 GMT

@FrostyBabe1 Thanks for the info on the Roth. My financial guy told me that I would have to start disbrutions at age 70.5 for my Roth.

i have an appointment coming up with him soon. I can't wait to discuss this with him.

Re: Withdrawing On A Roth IRA

Caffeina — Sun, 26 Aug 2018 17:04:50 GMT

@Carmie wrote:
@SharkE wrote:
First thing to be worried about is the IRS. They have their hand in your pocket from cradle to grave. Ask whomever about the tax related to it.

We pay taxes on money U make ,pay it again on that money invested, if anything you invested, now being withdrawn, pay it again. Death & taxes,you
can count on
There are no taxes involved with a Roth IRA, just a Traditional IRA, so no worries about the IRS being in your pocket.

i have noticed that the withdraw fees can be quite high. The investment companies make a fortune from retiree savings.

i agree that the OP should investigate and see. what would be the least expensive way to take the withdraws. You must start withdrawing at age 70 1/2 or the penalties for not doing so are very steep.

According to the IRS not all distributions from a Roth are tax free.

https://www.irs.gov/publications/p590b#en_US_2017_publink1000231061