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Subject:  Re: Should I Convert? Date:  6/19/2011  6:07 PM
Author:  edyboom223 Number:  113545 of 127549

I do have 1 more nagging question.

"If I understand this correctly, I can withdraw my 2011 contribution with no penalty.

I can withdraw my 2010 contribution with no penalty as long as I withdraw it by October 15, 2011 - 6 months after the April 15.

Correct on both counts, except that you must also withdraw the earnings on the excess contributions. See page 49 of Pub 590. You include positive earnings on your return for the contribution year (you may have to amend 2010), and they are subject to the 10% premature distribution penalty."

I contributed to the Roth for 6 years. 3 were good, and 3 were bad. I must withdraw the earnings on the excess contributions.

Well, will that mean I have to withdraw all earnings for 2009, 2010, and 2011?

How are these "earnings" determined. I contributed $14,000 legally before I contributed the $15,000 in excess. Who is to say that my increase in stock value is from the 15k and not the 14k. Obviously, any earnings would come from all 29k in contributions. I am just wondering if all of my earnings will have to be withdrawn from certain years or just part of the earnings. To me, only part of the earnings should need to be withdrawn since I also have legitimate money growing in the account as well. Agh! :) Perhaps I have to withdraw all of the earnings and that's my punishment!

It's starting to look like I'll have way more money than I need for today :), but less money than I want for the future :(. I'll restart the Roth when I am in the States for good in 2-3 more years!

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