A:

Because you are over age 59 ½, you will not owe any early-distribution penalty on any distributions you take from your Roth IRA. Also, because it has been more than five years since you established your first Roth IRA and you meet one of the exceptions (being at least age 59 ½), you will not owe tax on any distributions from your Roth IRA.



This question was answered by Denise Appleby
(Contact Denise)



RELATED FAQS

  1. How does a forward contract differ from a call option?

    Find out more about forward contracts, call options, the mechanics of these financial instruments and the difference between ...
  2. Does my employer's matching contribution count towards the maximum I can contribute ...

    Maximize 401(k) contributions on your own without fear; employer contributions are separate and do not hinder you contributing ...
  3. What are the main risks associated with trading derivatives?

    Understand derivatives trading and learn about the primary risks usually associated with trading in the derivatives market, ...
  4. How can an investor profit from a fall in the utilities sector?

    Learn how an investor can profit from a fall in the utilities sector by employing speculation methods such as short selling ...
RELATED TERMS
  1. Qualified Longevity Annuity Contract

    A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity ...
  2. Strike Width

    The difference between the strike price of an option and the ...
  3. Inverse Transaction

    A transaction that can cancel out a forward contract that has ...
  4. Reference Equity

    The underlying equity that an investor is seeking price movement ...
  5. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  6. Boundary Conditions

    The maximum and minimum values used to indicate where the price ...

You May Also Like

Related Articles
  1. Investing Basics

    How To Create Capital Protected Investment ...

  2. Options & Futures

    How does a forward contract differ from ...

  3. Options & Futures

    Tesla Stock Too Expensive? Trade Tesla ...

  4. Options & Futures

    Stock Options To Trade On Intraday Momentum ...

  5. Retirement

    Does it Make Sense to Have an MLP in ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!