Withdrawing from a Roth IRA

[wipedown]

If one has $20,000 ($15k contributions, $5k earnings) from prior-year investments in a Roth IRA and he decides to withdraw $10,000 this year, does he have the option to payback the withdrawn amount?

If so, how much time does he have? Can he still contribute the maximum $4000 limit in addition to repaying the $10,000?

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[mshheaddoc]

Its a withdrawl not a loan so you can't "pay it back".

 

[UserNameNeeded]

Hmm...I don't know if you can take a loan out from your Roth IRA like you can with a 401K, but that's an interesting question.

 

[The White Coat Investor]

If one has $20,000 ($15k contributions, $5k earnings) from prior-year investments in a Roth IRA and he decides to withdraw $10,000 this year, does he have the option to payback the withdrawn amount?

If so, how much time does he have? Can he still contribute the maximum $4000 limit in addition to repaying the $10,000?

No. You can withdraw your 2007 contribution and pay it back by April 15 2008, but that is all. But you could withdraw $10K on Jan 7 2007 and still contribute $4K on Dec 3rd 2007 if you wanted for a total withdrawal this year of $6K. Sorry, it is called an Individual RETIREMENT Account for a reason. Otherwise everyone would put all their money in there. There has to be some limits.

 

[etf]

If one has $20,000 ($15k contributions, $5k earnings) from prior-year investments in a Roth IRA and he decides to withdraw $10,000 this year, does he have the option to payback the withdrawn amount?

If so, how much time does he have? Can he still contribute the maximum $4000 limit in addition to repaying the $10,000?

if you pay back the $10k within 60 days it's considered a rollover, so it's allowed. you might have to open a roth rollover account at a different institution though; i'm not sure if the original institution will take it back.

 

[wipedown]

if you pay back the $10k within 60 days it's considered a rollover, so it's allowed. you might have to open a roth rollover account at a different institution though; i'm not sure if the original institution will take it back.

The 60-day payback time was what I vaguely recalled reading recently (not just on the current-year contribution, as stated in a prior post in this thread, but the entire balance).

I tried googling, but it would be great if anyone has a link to a full description of this.

 

[Sol Rosenberg]

The 60-day payback time was what I vaguely recalled reading recently (not just on the current-year contribution, as stated in a prior post in this thread, but the entire balance).

I tried googling, but it would be great if anyone has a link to a full description of this.

Forget google, go right to the horses mouth:

http://www.irs.gov/publications/p590/ch02.html#d0e10357

NOTE: I didn't carefully read through this to make sure it was exactly what you were looking for, but, it looked like it after a cursory scanning.