After-Tax Distributions

[Guest LVelleman]

Although a person would not have to pay income tax, would someone under 59 1/2 still have to pay the 10% early withdrawal penalty on after-tax distributions?

Thanks!

[Belgarath]

No. The premature distribution tax is imposed on the amount of the distribution includable in gross income. IRC 72(t)

[wmyer]

There is a 10% penalty though on the earnings. The earnings and principal are taken out proportionally for post-1986 post-tax money.