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Attention Roth experts,
My understanding of the difference between a traditional and a roth ira, is that when you put the money in a traditional is pre tax while a roth is after tax money(simplified), but when you take it out you get taxed on the earnings (& possibly contributions) in the traditonal but not in the roth. Further, the 10% penalty for early withdrawal applies to both equally. My question is this, and it may be premature since the roths are not past their 5 year waiting period yet, how come when you do a 72t substantially equal payment from a roth it is not both penalty and tax free? Under 72t, the traditional is penalty free, but you are required to pay taxes on the earnings (the same as if you took the money out past the age 59 1/2 rule in retirement). Every source I've asked so far says it is treated the same way as a traditional if you make the 72t option, but it seems to me that it should be given the retirement withdrawal status of penalty and tax free-the golden goose!

I will keep asking this question until I get the answer I want to hear. Thanks for your input.

Tony bologna
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