My wife and I both have Roth IRA accounts. One of the features that we both like about them is that we can withdrawal our contributions at any time with no penalty. We're considering making use of this feature as part of our emergency fund, but want to make sure that doing so wouldn't impact our retirement savings at all. So I'm trying to understand a couple of points in more detail.
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My understanding is that if we withdrawal any money from our Roth IRA, it reduces that year's contribution. So If I put $6,000 in to my Roth IRA in 2019, then withdrawal $4,000 on 12/20/19, then it's like I only contributed $2,000. Is this correct?
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I know that I can make 2019 contributions to the account until April 15 2020. How are contributions made from 1/1/20 - 4/15/20 handled if I'm also contributing to the account in 2020? For example, let's say I contributed $2,000 in 2019. On 3/1/2020, I make a contribution of $4,000. How does this affect my contribution limits? Have I now used all $6,000 of my 2019 limit and $0 of my 2020 limit? Or $2,000 of my 2019 limit and $4,000 of my 2020 limit? Or do I need to somehow indicate which year contributions made between 1/1/20 and 4/15/20 are for?
Submitted February 24, 2019 at 09:44AM by molten_dragon https://ift.tt/2GHiqU0
