[Unspokenwords]

Hi
I opened a 401k roth last year and put in 3k. Now it has a gain of $300.

Due to certain reasons, I wish to withdraw all my roth money. (3000+300). I am still 26 years old.

How much penalties I may face when I withdraw?

Thanks

[AtlantaTaxExpert]

Because you making the withdrawal less than FIVE years after you opened the account, you will pay a 10% Early Withdrawal Penalty on the entire $3,300, for a total tax of $330.

[ebaines]

For an early withdrawal from a Roth IRA if the initial $3K contribution did not come from a tax-sheltered account (i.e, it was funded with "after tax" money, as most Roth acounts are), then the 10% penalty does not apply to the withdrawal of those initial contributions, even though you are under age 59-1/2 and the account is less than 5 years old. So if you withdraw the full $3300, which consists of $3K in your own after-tax contriubutions plus $300 in earnings in the account, you will owe both the 10% early withdrawal penalty plus regular income taxes only on the $300 in earnings.

In addition - if you use the money for certain purposes such as unreimbursed medical expenses or insurance premiums, first time home purchase, or higher education expenses, or if you are disabled, you may be able to avoid the 10% and maybe even income taxes on the earnoings - post back if this is the case and we'll provide more details.

[Unspokenwords]

What if I withdraw money after 5 years.. what would be the penalties?

[Unspokenwords]

I want to buy first home... but its overseas in India.. can I do that?

[ebaines]

what if i withdraw money after 5 years...? what would be the penalties?

Still the same - the penalties and taxes apply if either (a) you are under 59-1/2, or (b) the account is less than 5 years old.