[Nina]

Our teenage daughter has a W-2 job in which she’s earning about $5000 a year. She has a Roth IRA set up.

If we move money from her UTMA account to the Roth, can she pull out the Roth contributions without penalty down the road if she needs them for other expenses, like a down payment on a house?

I just realized that the UTMC account is considered her asset for FAFSA, so better not to have money in that.

Thoughts?

[Morgan]

I was told you can pull your contribution out of a Roth IRA at any point without an issue.

[Mark]

If she makes 5k a year, u can’t transfer money from another account thats going to add up to more than her income

[Caroline]

With Roth IRA the contribution can be taken out without penalty after 5 years of it sitting there.

The rest is with the same penalty as taking out from your retirement account early and the contribution as well if not in for the 5 year minimum.

[Author]

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