DavidD66
Expert Alumni

Retirement tax questions

Yes, you answered the questions correctly.  If you withdraw money from a traditional IRA before age 59½, you will have to pay income tax and a 10% penalty unless you qualify for an exception.  Paying the tax on a Roth conversion is not one of those exceptions.  For more information on the exceptions see the following IRS site:

 

Retirement Topics - Exceptions to Tax on Early Distributions

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