Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: jayob Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121594  
Subject: Roth early distribution penalty questions Date: 11/30/2009 1:05 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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?

Q3: Do I understand correctly that the 10% penalty does not apply to me?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement