ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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Exactly, I may not earn anything on it but I can just leave it there as un-allocated 'cash', but at least I'll have contributed to last years limit if I end up not needing it. We don't think we will,...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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This is an interesting topic.
I have excess cash that I can throw into my Roth IRA. I only contributed 1k for 2011 but if ROTH IRA is truly penalty free, then might as well contribute?
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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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...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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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%...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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:eek::eek::eek::eek::eek::eek::eek:
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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Yes, you can do that, but I would not take that risk if you know you'll need the money in two or three months.
Investing is a long-term thing, not a short-term thing.
For money you'll need in...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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May as well. Put it into rather safe investments and you can pull the principle if you need to.
This definitely changed my outlook on ROTH's, and I'll be trying to max it out each year going...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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April 15th is quickly approaching. We are scheduled to max out, or close to max out, our Roth IRA this year (2012).
Last year we contributed nothing (2011).
We have a fair amount of cash in the...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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Isn't it true that you can't tap money that you've deposited in the last 3 years (or so?)
I mean, the money must have been in the account for at least 3 years before you can withdrawl.
Makes...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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Contributions can be withdrawn without penality at any time. You start to tap into earnings and you owe a 10% penalty.
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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provicemo,
Please look at http://www.irs.gov/pub/irs-pdf/p590.pdf, page 61-63. It seems pretty clear that I can't withdrawl ANYTHING without a 10% penalty unless its FIVE years after the deposit. ...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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Then the money has to be seasoned for five years (as I understand our absurdly complicated tax code).
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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You forgot the important detail before it:
It only applies if you're doing a conversion, not if you start with a regular Roth IRA.
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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wrong, contributions can be withdrawn at anytime, penalty free.
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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If there's a low-ish probability that you'll need to tap the Roth IRA, I'd go ahead an open one. If you don't contribute the 5k per spouse, that's valuable tax-sheltered space that's lost forever....
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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17 Replies
3,102 Views
......
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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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...
ROTH IRA For Temporary Emergency Fund? Your opinion?
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Thread created 03-27-2012 by Serus
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You don't have to invest the money into stocks/mutual funds with in a Roth account. You could easily keep some or all of it in a cash/money market position to serve as an emergency fund. Granted, you...
