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Penalty on early distribution


Guest tammyfranco

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Guest tammyfranco
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What are the consequences (tax, penalty, etc.) on taking out 100% of my Roth IRA? I converted in 1998 and paid the first 1/4 taxes in 1999. I have earnings of approx. $20,000 from investing it in stocks. Are these earnings taxable? Is the 10% penalty on the principle or the whole amount (75k)? Is there any exemption for taking the money for business start up capital? And lastly, if I really need the money now, am I still crazy to take it out, considering all the penalties?

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