Roth distribution before 59.5
What are the tax ramifications for the following: John is currently 55 yrs old, has a Roth IRA that was established more than 5 yrs ago. The value of the investments in the Roth have lost value and are lower than the amount originally invested. John liquidated the Roth recently. are there penalties?
Permalink Submitted by Alan - IRA critic on Wed, 2018-04-25 18:03
There would be no taxes due, however if a Roth conversion was done in the last 5 years, the 10% recapture penalty would apply to the amount distributed allocated to the taxable portion of any such conversions.