ROTH IRA For Temporary Emergency Fund? Your opinion?

Quote from provicemo : Re-read 590. "The distribution from the Roth IRA is not a qualified distribution. The portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax." Your contributions are not taxable distributions in a Roth (you already paid taxes on them), therefor you don't have to pay the 10% additional tax penalty. It would be a non-qualified distribution, but would not qualify for the penalty.

Thanks. I was starting to see that too.

What about IRA to Roth IRA rollovers? I am seeing conflicting info here.

509 basically says that the rollover will be subject to 10% tax prior to 5 years maturation. But then there's an example on Page 64 that seems to show "Justin" not having to pay penalty on withdrawl of a rollover at 4 years.

I also read somewhere that even 10,000 downpayment for first time homebuyer will be 10% tax if the distribution comes from a rollover prior to 5 year maturation!



"You generally must pay the 10% additional tax on any amount attributble to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). A separate 5-year period applies to each conversion and rollover."

So I understand you can withdraw any contributions you make to a ROTH IRA without penalty but how does that work with a 401K? From what I understand you can't withdraw funds from a 401K but what about if you roll it over to a ROTH IRA and pay the taxes on it? Are the contributions then able to be withdrawn? Thanks.