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Financial Planning / Tax Strategies
|Subject: Re: Roth early distribution penalty questions||Date: 12/1/2009 3:08 AM|
|Author: TMFPMarti||Number: 107823 of 119695|
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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