I would like to withdraw money from both a Roth IRA and a Rollover IRA to help with a first-time home purchase. I have never withdrawn money for this purpose before.
I have $5,500 in a Roth IRA that was opened in 2009. This is all earnings, including recent earnings. (All my contributions were withdrawn a few years ago during a financial emergency. I have never converted into this account.) I also have a significant amount of money in a Rollover IRA.
My plan right now is to withdraw all $5,500 from the Roth, penalty- and tax-free, and $4,500 from the Rollover, penalty-free. This will give me $10,000 (less any withholding) to put towards the purchase.
Aside from the dubious move of stealing from my retirement, am I missing anything? I suppose my biggest question is regarding Roth earnings: if my account grew $100 last month, do I have to wait five years to withdraw that $100 for a first-time home purchase? Do I have to pay taxes on that $100? Thanks in advance.