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Retirement tax questions
No, you don't have to pay the 10% penalty since it is now a regular distribution. As a regular distribution, you first withdraw the contributions which are always tax- and penalty-free. Then earnings are only taxable if it isn't a Qualified Distributions in 2021.
It seems as if you had enough contributions therefore your earnings are not touched and you do not have to pay the 10% penalty.
You left it in the account for all those years and paid the 6% penalty.
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March 5, 2022
7:41 AM