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Subject:  Re: Fool's Age Date:  9/3/1997  8:38 AM
Author:  zbar Number:  269 of 88511

There is a rule that the IRS set up that allows you to avoid the 10% penalty. However there are strict limitations. You may take the money out as a series of annual (almost) equal distributions. The distributions must be taken out until the LONGER of five years or until you reach age 59 1/2. There are three methods the IRS allows to calculate the amount allowed to be withdrawn. Any variation from the IRS's rules and all ( including prior year) distributions become subject to the 10% penalty for early withdrawals.

Of course the distributions will be treated as regular income and subject to normal taxes to the extent that they are not receipt/return of your non-deductible contributions.

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