tax and/or penalty on Roth distr less than 5 yrs
client made a post tax contribution to a tIRA in 4/15, on behalf of 2014. We immediately converted it to a Roth IRA. If she fully liquidates the Roth IRA today, will she owe any tax AND/OR 10% penalty on the amount representing her contribution?
if yes, how long does she have to wait before fully liquidating to avoid the tax and/or 10% penalty?
Permalink Submitted by Alan - IRA critic on Wed, 2019-09-11 18:04
There would be no tax or penalty on the withdrawal of amount converted as the conversion was non taxable. If there are any gains on the conversion, tax will apply to the gains and also penalty if under 59.5. This assumes that there are no other Roth IRA accounts, or Roth regular or conversion contributions made.