Roth Loan Deemed Distributed - Penalty Tax?

[Guest jimmybeau]

If a loan from the Roth source ends up being a deemed distribution, what are the tax consequences? The contributions have been in the account less than two years.

I can't find a good source that addresses this and sure appreciate any help.

Thanks!

jimmy

[QDROphile]

Look in the regulations to see how a premature Roth distribution is taxed. There a Q&A about hardship distribution that is instructive, and there may be more on point.