Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Tomato, tomahto, indeed. You're not getting penalized 10% for withdrawing that Roth contribution. You're getting a smaller retirement savings credit than you would have had otherwise. And that's fair enough - the credit is determined (in part) by the net amount of your 2002 contributions to retirement savings (IRAs, 401Ks, 403Bs, etc.). You reduced that number by $1000 when you withdrew the contribution. Surely you don't expect to get credit for something you didn't do?

Print the post  


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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.