Can I withdraw dividends from my Fidelity Roth IRA?
Here’s a summary of the main problem and solutions discussed in the post:
- Main Problem: The user is unclear about the tax implications of withdrawing dividends from a maxed-out Roth IRA and reinvesting them into an individual account.
- Solution: Earnings from a Roth IRA can be withdrawn tax-free and penalty-free after 5 years and if certain conditions are met, such as reaching age 59½ or using the funds for qualified expenses.
- Additional Resource: Fidelity provides an IRA FAQs page for further information regarding withdrawals and other related questions.
Here’s the full thread
If you max out your Roth by investing 6k can you withdraw the the dividends those stocks make tax free and invest that in your individual account?
Hey thanks for the question. Let me provide some information regarding Roth IRA withdrawals.
Earnings from a Roth IRA can be withdrawn federally tax-free and penalty-free provided that it’s been 5 years since your first contribution.
In addition to the above conditions, one of the following criteria must be met in order to make penalty-free withdrawals: age 59½, qualified higher education expenses, qualified first home purchases (up to $10,000), certain major medical expenses, certain long-term unemployment expenses, death, disability.
Our IRA FAQs page on Fidleity.com is helpful, but let me know if you have any additional questions too!
IRA Frequently Asked Questions: https://www.fidelity.com/retirement-ira/ira-benefits-faq