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Subject:  Re: Roth early distribution penalty questions Date:  12/1/2009  3:08 AM
Author:  TMFPMarti Number:  107823 of 127753

I established my first and only Roth IRA early in 2009, converting $50,000 in securities from my conventional IRA at the bottom of the market crash. I will pay income tax on the $50,000 converted. The Roth IRA is now worth $80,000. I am 74 years old.

Q1: Do I understand correctly that I can take up to $50,000 out as a tax-free distribution in 2010?


Q2: Do I understand correctly that any amount taken out over $50,000 in 2010 would be taxable as income but would be tax free in 2014 after the 5 year waiting period?

Yes. (Also 2011-13)

Q3: Do I understand correctly that the 10% penalty does not apply to me?


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