Early withdrawal from Roth IRA

[Guest lvdr]

I have heard that you can withdraw the amount invested in a Roth IRA without penalty if needed. I am no where near retirement age, but I need to pay some debts, and was thinking of using some of my Roth IRA to do so. Is this possible if I only withdraw some of the money I originally placed in the Roth IRA? It was all post tax dollars, so there shouldn't be any penalty right?

Thanks.

[John G]

You can withdraw up to the cummulative amount of contributions without tax obligation or penalty.

But, before you do this, consider all your options. Money is truely on sale right now. Very low interest rates associated with home equity loans, signature lines of credit, margin interest rates, initial rollover credit card balances, etc. You can refinance your house. You can often negotiate favorable terms on existing debt.

The Roth is a great tax shelter. Some folks don't qualify or can lose their qualification in later years. The rules can change. I would be very reluctant to take funds out of the Roth.