No. of Recommendations: 0
Author: TMFPixy Date: 12/9/00 11:10 AM Number: 26511
If you have a gain in the account, then you will pay both ordinary income taxes and the early withdrawal excise tax of 10% on that gain. Your original after-tax contributions will not be taxed or penalized.

Thanks Pixy,

I was sure that the after tax money used to fund this account wouldn't be taxed, but I wasn't sure about any penalty on this money.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.