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Author: irasmilo Big gold star, 5000 posts 10+ Year Anniversary! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: Re: No tax on returned Roth Contributions? Date: 3/12/2003 7:37 PM
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I am in the same situation, I withdrew $1000 of original Roth contributions, thinking it would have no tax consequences, mainly going on the following Fool article:

http://www.fool.com/ira/rothvreg.htm?ref=mp
Choose a Roth IRA if you can do without the tax break right now. It's a more flexible instrument, because:

It allows you to withdraw your contributions at any time, penalty- and tax-free.

So thanks Motley Fool, real money saving investment advice. I now owe $100 and must file an admended return due to this dangerously false advice.


What are you griping about? The Fool's advice is correct. If you withdrew a contribution, you don't owe a penalty. If you withdrew a conversion within 5 years and don't meet any of the exceptions, you do owe a penalty. If you didn't read the rules and don't know the difference between a contribution and a conversion, you have no one to blame but yourself.

Ira
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