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Author: mawhinney Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: ROTH Mistake Date: 3/4/2014 12:58 PM
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Help! I just realized I made a major mistake. I closed a $39.72 Roth MM fund that was held less than 5 years. The $39.72 came from a Roth account that I no longer wanted to reinvest any payouts in additional shares of the fund. Will I be penalized on just the $39.72 or will I be penalized on the entire amount in Roth holdings? How much is the penalty?
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18983 of 19483
Subject: Re: ROTH Mistake Date: 3/4/2014 2:37 PM
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You'll only be penalized on the $39.72, but they take an arm and a leg.

intercst

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18984 of 19483
Subject: Re: ROTH Mistake Date: 3/4/2014 4:38 PM
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You'll only be penalized on the $39.72, but they take an arm and a leg.

You need to stop limb shopping at Tiffany. IF, and that's a major if, there is a penalty it will be $4.00, but there's likely no penalty. See the ordering rules in Chapter 2 of Pub 590.

Phil
Rule Your Retirement Home Fool

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Author: kuzumel One star, 50 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19009 of 19483
Subject: Re: ROTH Mistake Date: 3/21/2014 7:12 PM
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Hopefully you contributed more than $39.72 in cash in the same year. That you can withdraw without penalty - prorated.

--
Kuzu

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