@alenkeln - how old are you? that simplifes matters if you are over 59,5 as there is no 10% penalty, which is the same as a TRAD IRA. Conversions can always be distributed without additional tax (because you already paid the tax when contributed); but 10% penalties may apply, based on the chart below.
here are the rules:
as noted, the IRS presumes that all Contributions are distributed first, all Conversions next and Earnings Last.
| Under 59.5 years old | Over 59.5 years old |
Roth opened less than 5 calendar years | Contribution: no penalty and no tax liability Conversions: 10% penalty and no tax liability Earnings: 10% penalty and tax liability (exceptions apply) | Contribution: no tax liability Conversion: no tax liability Earnings: tax liability (exceptions apply) |
Roth opened at least 5 calendar years | Contribution: no penalty and no tax liability Conversions: no penalty on contributions made at least 5 years ago; 10% penalty for contributions made in the last 5 years; no tax liability Earnings: 10% penalty and tax liability (exceptions apply) | Contribution: no tax liability Conversion: no tax liability Earnings: no tax liability |
