All Forum Posts by: Daria B.

@James Wise may be able to give some direction. I "think" he's a broker in the area.

@Jim P. you have quite a bit going on and perhaps you want to not rely on Turbo Tax or any other non professional software to sort out complex tax. Consulting a CPA can help you immensely. But if you need to use this then maybe @Dmitriy Fomichenko can help with the 401 questions and @Steven Hamilton II can help with the CPA reporting side. Good Luck...

 And that's "any" earnings as long as the "account" is older than 5 years?

Ok I got that thanks.

What of the earnings, when can they be withdrawn without penalties?  

 I know but how is the 5 years interpreted? Account open for 5 years and any or all earnings can be withdrawn or are the earnings based on 5 years? See my original example.

@Buddy Holmes

Exactly! I also transferred my traditional holdings both (traditional and Roth) from Schwab to MidlandIRA to invest in RE. I know my transfers have no consequence because it was a like-kind transfer.

However, I would like to contribute - and I want to find out about withdrawals of earnings. The example I gave was for withdrawal of earnings and wondering "which" earnings I could withdraw.

 Try the site: findcompsnow dot com

I use it and compare to realtor to see if they come close. 

I found several descriptions regarding this rule - below is one description.

What is the Five Year Rule?

An investor can withdraw his or her contributions to a Roth IRA at any time without tax or penalty. But, that is not the same case for any earnings or interest that you have earned on your Roth IRA investment. In order to withdraw your earnings from a Roth IRA tax and penalty free, not only must you be over 59 ½ years-old but your initial contributions must also have been made to your Roth IRA five years before the date when you start withdrawing funds. If you did not start contributing in your Roth IRA five years before your withdrawal, your earnings would not be considered a qualified distribution from your Roth IRA because of its violation of the five year rule.

I understand I can withdraw contributions without penalty but what of the earnings test.

My question centers around the "five years before the date when you start withdrawing funds." This relates to the interest and earnings. If I am 59 1/2 and meet that part of the rule, is the earnings like FIFO (first in first out)? 

Ex: ROTH opened in 2012

2012 contribute $5k, earnings $500.

2013 contribute $5k, earnings $700.

2014 contribute $5k, earnings $1k

2015 contribute $3k, earnings $1,100

2016 contribute $0, earnings $1,150

2017 contribute $0, earnings $1,160

These are all hypothetical numbers.

So now my principal is $18k and "earnings" as stated for each yr.

Does this mean I can only withdraw without penalty in 2017, $500 because it is now 5 yrs later and meets this 5 yr or can I withdraw more earnings because it's the "account" that was opened 5 yrs ago?

Thanks

 Dates are what is followed so why is your attorney telling you that is not a reason? Why has it been 4 months? 

@Sandra Holt Good luck. I have property in Halethorpe, not too far from you. I'd be interested in hearing how your venture goes on the development end. I've looked in the area where I live to do the same thing but have no experience - just ideas and seeking a "how-to" to see if it's really feasible. Always thinking and trying to make it happen.... ;-) Great you are looking to expand into developing the land.