If you absolutely need to, you can take an early withdrawal from Roth IRA contributions under certain conditions.  Compared to a Traditional IRA or 401k plan, this is a huge advantage because those plans generally have a 10% penalty tax (on top of the regular taxes you'll pay) if take the money out before age 59-1/2.  BUT don't pop the champagne and run to the bank just yet!  The rules are a little more stringent than you may realize at first.   The IRS Rules for an Early Withdrawal from Roth IRA Contributions: First of all, you're only allowed to take the money out of your contributions - the money you put in.  This is different … [Read more...]