Roth IRA withdrawals

Q:

Can I invest in a Roth IRA and withdraw money from it whenever I need to? — C. W., Augusta, Ga.

A:

Generally, no. A Roth IRA is a retirement account designed to let you build a nest egg for the future. Its rules require you to have the account for at least five years, and to not take withdrawals until age 59½. If you follow the rules, withdrawals are tax-free, which can be a powerful benefit in retirement.

You can withdraw sums you contributed at any time, tax- and penalty-free, but withdrawing any earnings those sums generated in the account can trigger taxation and/or a 10 percent penalty, depending on how long you’ve had the account. There are a few exceptions, though, such as withdrawals for a first-time home purchase or for qualified education expenses that let you avoid penalty charges and/or taxes. Learn more at Rothira.com and Fool.com.

Never keep any money that you might need within five (or, to be more conservative, 10) years in stocks, as the stock market can be volatile. Short-term dollars are best kept in bank accounts, certificates of deposit (CDS), money market accounts or other less volatile places.

Q:

If I hold some paper stock certificates for a company that’s still around, how do I sell those shares? — L. R., Butler, Pa.

A:

Paper certificates can be a hassle; most shares are just owned electronically these days. Your brokerage may be able to handle the matter for you. Otherwise, call the company or check its website’s “Investors” page to see what “transfer agent” it uses, as the agent can probably buy your shares from you. Learn more about these and other options at Wikihow.com/sell-stock-certificates.