UK tax

Excellent.

i just had a quick look and I think you are correct that even once you have passed the age of 59.5 that contributions made before age 59.5 have to be 5 years old before they can be withdrawn penalty free.  I think if a Roth contribution was made at age 59, you would have to be age 64 to be able to withdraw it penalty free. Bummer.

I can't find a source for this, but I was under the impression that Roth contributions can be withdrawn at any time (even before 59.5) penalty free. Only the earnings attract penalties if withdrawn early.

I can't find a source for this, but I was under the impression that Roth contributions can be withdrawn at any time (even before 59.5) penalty free. Only the earnings attract penalties if withdrawn early.

True.....but I would have to have all the paperwork to back that up.....I don't.

True.....but I would have to have all the paperwork to back that up.....I don't.

Your Roth IRA provider is required to keep a record of how much you've made in contributions over the life of the account. You can withdraw up to that amount penalty free.

Your Roth IRA provider is required to keep a record of how much you've made in contributions over the life of the account. You can withdraw up to that amount penalty free.

That's what I have a problem with. As stated......I started the ROTH when I was with Edward Jones.......about 3.5 years ago I moved everything over to Vanguard. Vanguard evidently does not keep track of how much and when I invested with Edward Jones (why would they?). Vanguard only has the info of the time spent with them......which I certainly understand. I thought at one time that I would just be safe and pull maybe half of the money out of the ROTH since that would keep me safe in the amount that I had used of "my" money......but the people I contacted indicated I would need to prove the dates/amounts of when those transactions took place.

It isn't that big of deal to me.....I would like to withdraw that money fairly soon, not because I need it right now, just so I could close the Vanguard account completely. I am likely to just wait for another 1.5 years or so and take it out then. It would be nice to take advantage of the current exchange rate however.......

I can't find a source for this, but I was under the impression that Roth contributions can be withdrawn at any time (even before 59.5) penalty free. Only the earnings attract penalties if withdrawn early.

From the irs.gov site.

https://www.irs.gov/publications/p590b/ch02.html

A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.

1. It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and

2. The payment or distribution is:

Made on or after the date you reach age 59½,

Made because you are disabled (defined earlier),

Made to a beneficiary or to your estate after your death, or

One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit).

It is not that clear and I may be wrong but I read this as that the condition listed as 1. must be satisfied first.

Also from that site

Distributions of conversion and certain rollover contributions within 5-year period.   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). A separate 5-year period applies to each conversion and rollover. See Ordering Rules for Distributions , later, to determine the recapture amount, if any.

I just wish I had kept all our records when we moved back. We pretty well got rid of everything we owned. I think we sent back 500lbs in a shipment plus our bags on the plane.....that's it. Got rid of everything else we owned......and it didn't really hurt.