Thanks to BPicker for your reply. The IRS
stated to me over the phone that I have
to pay the 10% penalty on the $2,000 contribution
I made to my Roth in 1998. So who is right,
you or them? They quoted some rules in
their Pub. 590 which state that conversions
*and* contributions are subject to the 10%
levy. Is there some other rule their
rep was not aware of?

thx,
Earl Baker

Earl,

If the IRS told you that you have to pay the 10% on a withdrawal of your contribution (not a converted amount), they are flat out wrong.

There is nothing in Pub 590 that states otherwise. The rep simply did not know what he was talking about.

Barry