roth converted 2 years ago, now over 59.5, is distribution taxable?

[JHalligan]

100% of the ira was converted to roth, and taxes were paid. Now, a partial distribution is happening, but the 5-year clock has not been satisfied, making it a non-qual distribution. I think jsut the earnings are taxable, but, can he specify return of capital and not touch earnings, making it a tax-and penalty-free distribution?

[Lou S.]

My understanding of ROTH-IRA distributions is that basis is recovered first so if the partial distributions is less than the basis there would be no taxes due since participant is over 59 1/2. If partial withdrawal exceeds the basis recovery the earnings would be taxable as you don't meet the qualified ROTH distributions since it is less than 5 years.

[Dare Johnson]

I agree with Lou - basis is distributed first.

[JHalligan]

thank you both. I was reading the 590b, and thought that was correct.