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Retirement tax questions
To be a "qualifying" distribution, you must meet both the age test and the 5 year test. If you are over age 59-1/2, then the entire distribution is tax-free because you meet the age and 5 year rules. However, if you are under age 59-1/2, then you will owe income tax plus a 10% early withdrawal penalty on the gains in the account.
March 12, 2021
3:10 PM