Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
DeltaOne81,

Distributions of earnings from a Roth are only tax free under very specific circumstances. Early withdrawals have to satisfy very tight conditions to be tax-free (and the conditions are tighter if the money was due to a conversion). This taxpayer doesn't satisfy them.

But the OP said that the IRA was a rollover IRA. A "rollover" IRA is a transfer from a 401(k) or similar plan. Be sure not to confuse a rollover IRA with a "conversion" of a Traditional or Rollover IRA to a Roth IRA.
Print the post  

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.