Hello I just wanted to make sure I’m getting this right. I’m in my 30s. I been maxing out my Roth IRA since 2023 and there has been some growth. I expect this year (2026) to be a low income year so I converted a bit of my Traditional IRA to Roth, so now I’m sitting at let’s say 35k. (28 contributions, 5 conversion and the rest is gains).
My portfolio is setup for monthly income right now, with drip on most things but some are off and I just manually reinvest those dividends manually at the end of the week.
Later this year I’ll decide to stop working due to some health issues. I plan to withdraw about 1k per month. For a total of 12k per year, mostly from the dividends and selling a of my holdings to get to my 1k per month.
The question is, I’m allowed to take out my contributions which would mean 28 months of income (1k each) penalty and tax free as long as I don’t touch the conversion and earnings. It doesn’t matter that I’m withdrawing a mix of “dividends” plus some of the sold holdings. that correct?