2010 Roth IRA Withdrawal Penalties
If you own a Roth IRA, then you probably want to know what the 2010 Roth IRA withdrawal penalties are.
Every year the federal government sets the rules and regulations for early withdrawal penalties.
For the year 2010, the federal government set the rate of penalty for early withdrawal at 10 percent.
Early withdrawal is stated as any withdrawal made before the age of 59 and a half years of age.
This is done to insure that as many individuals as possible keep their money in their account until retirement.
Thankfully, there are some excepts to the early withdraw penalty rules.
Individuals are allowed to make an early withdraw without facing the 2010 Roth IRA withdrawal penalties if you are disabled, or are a first time homeowner.
Another exception is made for those who are going to use their money to pay for higher education.
There are a few other excepts to the rule, but the majority of exceptions are made under those three conditions.
Another interesting rule for 2010 Roth IRA's is something known as the five year rule.
The five year rule applies to those who don't start funding until they are older.
If for example you didn't start funding your account until you were 57 years old, then you would not be able to withdraw your funds until you were age 62.
There are exceptions to this rule too, but they are far fewer and more complicated.
The exceptions to this rule would best be explained by a financial expert.
There are limitations to even the above mentioned exceptions; for example there is a limit of a $10,000 withdrawal for the purchase of a home.
For a more detailed technical approach to all information about the 2010 Roth IRA withdrawal penalties, please refer to IRS publication 590.
Every year the federal government sets the rules and regulations for early withdrawal penalties.
For the year 2010, the federal government set the rate of penalty for early withdrawal at 10 percent.
Early withdrawal is stated as any withdrawal made before the age of 59 and a half years of age.
This is done to insure that as many individuals as possible keep their money in their account until retirement.
Thankfully, there are some excepts to the early withdraw penalty rules.
Individuals are allowed to make an early withdraw without facing the 2010 Roth IRA withdrawal penalties if you are disabled, or are a first time homeowner.
Another exception is made for those who are going to use their money to pay for higher education.
There are a few other excepts to the rule, but the majority of exceptions are made under those three conditions.
Another interesting rule for 2010 Roth IRA's is something known as the five year rule.
The five year rule applies to those who don't start funding until they are older.
If for example you didn't start funding your account until you were 57 years old, then you would not be able to withdraw your funds until you were age 62.
There are exceptions to this rule too, but they are far fewer and more complicated.
The exceptions to this rule would best be explained by a financial expert.
There are limitations to even the above mentioned exceptions; for example there is a limit of a $10,000 withdrawal for the purchase of a home.
For a more detailed technical approach to all information about the 2010 Roth IRA withdrawal penalties, please refer to IRS publication 590.
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