roth nq ditributions
If I take a NQ distribution from a ROTH IRA and I am over 59 1/2 are the earnings subject to 10% penalty as well as income tax?
Under 59 1/2 ?
If I take a NQ distribution from a ROTH IRA and I am over 59 1/2 are the earnings subject to 10% penalty as well as income tax?
Under 59 1/2 ?
Permalink Submitted by Alan Spross on Sat, 2008-10-25 01:53
Earnings would be subject to penalty if a non qualified distribution was taken prior to 59.5, but not after 59.5. A taxpayer could also qualify for a different exception to the penalty other than age 59.5, such as one of the special uses for the earnings distributed.
The only situation where an early withdrawal penalty would be triggered after 59.5 would be for a busted 72t plan and even then only with respect to distributions taken prior to age 59.5.