Posted by Peter_MD on July 22, 2002 at 12:27:25:
Mike:
I usually don’t respond to this forum, however, I will make an exception.
To answer your question, yes, you can personally withdrawal money from your Roth IRA (does not matter if contribution or earnings) up to 60 days. However, the mechanics are a little tricky.
If you roll over an IRA (ROTH, Traditional, Education) and take the money out in your name personally, the institution will deduct from the withdrawal check an amount equal to the Federal tax withholding on that amount. You can keep it for 60 days, however, you must put back the full amount within the 60 days (that includes the Federal tax withholding amount also). Example: You withdraw $5,000. but get a check for $4,000. Within 60 days you must redeposit (back to that institution or some other institution) the full amount of $5,000.
Now for a suggestion…you should have a CPA or get one in the near future to be part of your “team” to discuss these types of issues.
You should contact Mid Ohio Securities or Entrust and have them set you up with an account (establish a basic account). Since you can only do the 60 day withdrawal once every 365 days, you might want to withdraw the entire balance in the account from your institution you currently have the funds in. Use it for up to 60 days and then put the full amount back into the new account you established.
Once that is done, you can discuss with them about doing self-directed funding of your ventures that you are involved with in the future. Again, this is tricky but they will lead you by the hand.
Hope this helps…