- 1). Consult with your financial advisor and/or plan administrator. Explain that you would like to pull money from your Roth IRA.
- 2). Follow the procedure established by your IRA provider (such as a bank, mutual fund, or brokerage firm). The process varies from one institution to another. Usually a retirement plan specialist will handle will discuss the transaction with you to be sure you understand the possible tax implications. Otherwise, the actual withdrawal of funds is primarily the same as for any other type of account.
- 3). Complete IRS Form 8606 (Nondeductible IRAs), even if you are only withdrawing money you have contributed to the Roth IRA. You may withdraw contributions anytime. Form 8606 is used to determine if the money withdrawn will be considered contributions, rollover funds, or earnings.
- 4). Fill out IRS Form 5329 (Additional Taxes on Qualified Plans) when you withdraw any money from a Roth IRA early other than contributed funds. This is an IRS requirement, even if the money withdrawn is exempt from tax penalties. Form 5329 is used to calculate regular taxes due on funds withdrawn early as well as penalties.
- 5). Attach Form 8606 and Form 5359 to your tax return for the year in which the money was withdrawn from your Roth IRA.
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