Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Since you've already paid tax on a coversion at the time of conversion, there would be no penalty for a subsequent nonqualified distribution of it.

Just to add a bit, if earnings are withdrawn before the 5 tax year requirement is met, they will be taxable. But since you withdraw all of your Roth contributions and conversions before you withdraw earnings, it shouldn't be too hard for our OP to avoid this problem.

--Peter
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.