10% additional tax on non qualified distributions from a Roth IRA

[Guest Wallace G]

After several contacts with IRA specialists at the IRS, I have been advised I will owe 10% additional tax on a non qualified distribution that I have considered. In 1998, I converted from IRA to a Roth. I have not had any other Roth activity since and have included 25% of the conversion in my 1998,1999,2000 and 2001 taxable income. I was over 60 years old at the time of conversion. I was considering a partial distribution of the conversion amount(say 25%) in 2001 because it would not result in any incremental taxable income. Further, I assumed that being over 60 years old was valid exception to the 10% additional tax rule under section 72(t). I can not find any clear support in tax publications for the IRS advice I have received. Anyone have actual experience on this issue?

[BPickerCPA]

If you are over 59½ at the time you remove money from your roth IRA, there is NO, repeat NO, 10% penalty. All the exceptions of sec 72(t) apply, and the first exception is being over age 59½.

Whoever tells you otherwise is just plain flat out WRONG.

End of discussion.