Guest Giraf37 Posted November 12, 2006 Posted November 12, 2006 What about the distribution of a roth on the principal contribution: ex. 2 years ago I converted $5000 to a roth. I am sure it has earned on the capital. Will there be a penalty if I take a $1000 distribution from the principal amount? I am only 56 and the account is 2.5 years old. The money is to pay off the mortgage of rental property.
jevd Posted November 13, 2006 Posted November 13, 2006 Your conversion is less than 5 years old and you are under 591/2. YOur withdrawal will not be taxable but it will be subject to the 10% premature distribution penalty. JEVD Making the complex understandable.
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