Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461 
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Post by Rocky Mtn Saver on Jan 17, 2013 12:31:36 GMT -5
Okay, so I took some money from my Roth IRA last month, mostly as a sort of test of how this works. I only took out less than I have contributed to it in the last 2 years. So my understanding is that this distribution is a return of my basis and is not a taxable event. Am I correct that I need to fill out Form 8606 to make that clear to the IRS? Any tips on the 8606? BTW, if I am horribly wrong about this, I am still under 60 days and could probably return the $, I think...
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Jan 17, 2013 15:52:16 GMT -5
you can take out the principal without tax or penalty.
you should keep track of your basis.
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Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
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Post by Rocky Mtn Saver on Jan 17, 2013 16:12:29 GMT -5
I will print out the info with my annual contributions and keep it with my yearly tax info. Thanks for the reminder on that one!
I liked the Roth for many reasons, one of which being that I can access the money in a dire emergency. So I was glad to have a shortish emergency in which I could test out the theory.
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