This is a similar concept to what I read elsewhere about bridge loans, except the forum example given seemed to only involve contributions of a given year.
The distinction I'm making is one of amount. Since principal from any year can be withdrawn from a Roth, can one withdraw principal in aggregate and then refund it back to where it would have been with ordinary after-tax earnings?
The bridge loan example I read in the forum here seemed to suggest there was only 60 days to re-fund a withdrawal made for a particular year. But could that also apply to larger principal amounts which aggregate contributions from serveral years?
Let's say a Roth, a converted from a traditional qualified retirement account 15 years ago, has $100,000 of which only $20K is interest. Could one potentially remove $80,000 of it penalty free, and then within a few months, re-fund all or part of it? If only part of the Roth is refunded, can you continue to re-fund it over time back to its original level as if it had it not been cannibalized?
The distinction I'm making is one of amount. Since principal from any year can be withdrawn from a Roth, can one withdraw principal in aggregate and then refund it back to where it would have been with ordinary after-tax earnings?
The bridge loan example I read in the forum here seemed to suggest there was only 60 days to re-fund a withdrawal made for a particular year. But could that also apply to larger principal amounts which aggregate contributions from serveral years?
Let's say a Roth, a converted from a traditional qualified retirement account 15 years ago, has $100,000 of which only $20K is interest. Could one potentially remove $80,000 of it penalty free, and then within a few months, re-fund all or part of it? If only part of the Roth is refunded, can you continue to re-fund it over time back to its original level as if it had it not been cannibalized?