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Subject:  Re: Roth IRA withdrawl Date:  5/15/2000  12:46 PM
Author:  TMFExRO Number:  21951 of 88778

<< Regarding early withdrawal of converted money from a Roth IRA, you would be subject to the 10% tax penalty even though you have already paid the tax on the converted money. >>

This is incorrect. Since conversions have already been taxed, withdrawal of them does not constitute a taxable distribution. The penalty is calculated only on the taxable portion.

Phil Marti
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