Roth IRA non contribution penalty?

The penalty for withdrawing non-contributions from a Roth IRA is generally 10%, unless certain exceptions apply. Here are the key points to consider:

1. **Early Withdrawal Penalty**: The IRS considers withdrawals from an IRA before age 59½ as early withdrawals, which may include a 10% penalty, in addition to state and federal income taxes.
2. **Exceptions to Penalty**: There are exceptions to the 10% penalty for early withdrawals. These include using the withdrawal for a first-time home purchase, qualified education expenses, certain emergency expenses, or qualified expenses related to a birth or adoption.
3. **Roth IRA Benefits**: Roth IRAs allow for tax-free growth and tax-free withdrawals in retirement, provided certain conditions are met. Contributions can be withdrawn at any time, tax- and penalty-free. However, earnings must be withdrawn after age 59½ and after a five-year holding period to avoid taxes and penalties, unless exceptions apply.
4. **Tax Considerations**: It's important to note that while Roth IRA contributions are not tax-deductible, they can provide tax-free growth and qualified withdrawals in retirement, which can be beneficial for individuals expecting to be in a higher tax bracket in the future.

In summary, the penalty for withdrawing non-contributions from a Roth IRA before age 59½ and before the account is five years old is 10%, unless certain exceptions apply. It's advisable to consult with a tax advisor to understand the specific tax implications of your Roth IRA withdrawals.