I am hoping for some guidance on a new Roth IRA account. I am a 19 year old just starting my freshman year of college. I had some earnings this year that I would like to contribute to a Roth IRA. However, I may need the money in the next few years to pay for the latter years of my college education (once college scholarships run out). My family's tax adviser advised my family against allowing this as she mentioned if I start a new Roth IRA, I wouldn't be able to take the contributions out due to the five year rule and because earnings have to come out before contributions. I think both of these statements are wrong as I think I should be able to take out the contributions whenever I want tax free.
Am I right in saying, I could contribute $6,000 to a Roth IRA today, have it grow to $6,500 by next year and then pull $6,000 out with no taxes and no penalties? Any advice is appreciate because I want to make sure I am not missing anything that would make it so I can't pull the contributions out if I do need the money.
Submitted September 02, 2020 at 09:07PM by MoyFin https://ift.tt/2R2l61T
