[[hello,]]

Hi there...

[[ Apart from the 10% penalty for early withdrawals from a Roth ira, I hear that there is an additional
10% penalty (for a total of 20%) for withdrawals that are made from Roth accounts that were
created in 1998.]]

That "additional" penalty was under the OLD rules. They no longer apply with the imposition of the 1998 Tax Law Changes.

[[ Under what cicumstances does the additional penalty get triggered? Any
information would be appreciated.]]

It doesn't get triggered any longer. Prior to the law change, it had to do with an early withdrawal of converted funds. But, again, the "additional" 10% penalty has been removed. Anybody that tells you that the "additional" penalty is still in force hasn't kept up with the law changes. Period.

I'll discuss this issue in more detail in next weeks installment of "The Roth IRA" in the Taxes FAQ area. You might want to check it out.

[[ Thanks.]]

My Pleasure...
TMF Taxes
Roy

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