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How to Withdraw Roth IRA ContributionsThe opinions and information in this video are for strictly educational uses.How to Withdraw Roth IRA Contributions A Roth Individual Retirement Arrangement Roth IRA is subject to special rules that do not apply to other types of retirement accounts. Once you open a Roth IRA you may be able to make contributions into the account up to a certain limit. When you want to take money out of your Roth IRA i.e. withdraw or distribute funds you need to understand the federal tax consequences of doing so. Once you have calculated your potential tax liability for making a distribution you can withdraw funds from your Roth IRA if you would like. Open a Roth IRA. You can open a Roth IRA at any point in your life. To be a Roth IRA the account must be designated with the word Roth. To open one contact a number of brokers or financial advisers and ask about your options. Look for Roth IRAs that do not include any opening fees or maintenance fees. In addition look for account options that include minimal trading fees which are assessed when your money is invested in different markets. Shop around to find the best deal.Determine your eligibility to contribute to a Roth IRA. To contribute to a Roth IRA you must have taxable compensation i.e. an income and your modified adjusted gross income MAGI must be below a certain threshold. Calculate how much you can contribute. If you are eligible to contribute to a Roth IRA you can only contribute a limited amount. Generally you will be able to contribute the lesser of 5500 6500 if you are over 50 years old or your total taxable compensation in one year. However if your MAGI is above a certain level your contribution limit will be gradually reduced. Avoid contributing too much. If you contribute more than your allowable limit in any one tax year the excess contributions will be subject to a 6percent excise tax. You may be able to withdraw the excess contributions from your Roth IRA and avoid the excise tax. However for this to count you must also withdraw any earnings on the excess contributions. Unless the earnings distribution is qualified you may incur another tax for taking a non qualified distribution.Understand how contributions are taxed. Roth IRA contributions are not taxed when you contribute them to your Roth IRA. However because any amount you contribute comes out of your taxable compensation your contributions will always come from post tax income.