Business & Finance Personal Finance

How to End Roth IRAs

    • 1). Stop making annual contributions to a Roth IRA. You can put contributions into a traditional IRA if you are still saving for retirement, place money in savings or buy other investments.

    • 2). Call your Roth IRA custodian and request a distribution form. Distribution forms liquidate the money from the IRA. The phone number is on your statement.

    • 3). Complete the distribution form, requesting 100 percent liquidation and distribution. If you are not yet 59 1/2 years of age or have not owned the IRA for at least five years, you will add all earnings to income tax and pay a 10 percent penalty.

    • 4). Submit the form. Wait for your check to arrive from custodian and cash it. Call the custodian six to eight weeks later to make sure no dividends or interest posted to the account after your distribution. Request the Roth IRA be permanently closed.

Leave a reply