Under 59 1/2, take out money from Roth Ira below level I paid taxes on?

[Guest Barbaraira]

I am under 59 1/2. would like to withdraw some of my Roth Ira money. I would not take more than I put in at the origin of my Ira. Can I do this without penalty or tax problem?

Thanks

[Lame Duck]

The first question is whether the money in your Roth-IRA is attributable to contributions or a conversion. If it is regular roth-IRA contributions, the contributions can be recovered witout tax (you already paid it) and without being subject to the 10% penalty under code Section 72(t). (See Treas Reg. 1.408A-6(b) Q & A 5(a))

If the distribution is attributable to a conversion, the answer is slightly different. The conversion amount will be recovered without tax since you've already paid the tax. However, it will be subject to the 10% penalty if the distribution occurs within the 5-year period commencing with the first day of the taxable year in which the conversion is made. (See Treas Reg. 1.408A-6(b) Q & A 5(b))

Distributions of earnings will be subject to both income taxes and penalties if they do not meet the requirements for a qualified distribution.

[Appleby]

Note also that the 10 percent penalty is waived if you meet an exception; which includes the attainment of at least age 59 ½ when the distribution occurs