- owner attains age 59 1/2
- owner's death or disability
- used for qualified first-time home purchase ($10,000 max)
If the 5-year holding period is not met, any investment earnings withdrawn are subject to a 10% penalty tax. If the 5-year holding period is met, but none of the conditions are met, the same income taxation and 10% penalty apply. Contributions to a Roth IRA may be withdrawn at any time without being taxed or incurring a penalty.
Nothing contained herein is intended to be, nor should it be construed as tax or legal advice. If you have a tax question or legal question, please consult your tax professional or attorney.