@jbillz wrote:
This is very helpful, thank you so much.
- - Yes it is a Roth and the code is J. The Roth is more than 5 years old
- - All the funds were contributions, not conversions. I went through that part of the interview.
- - I am 54 so I am withdrawing early.
Based on your note it sounds like this withdrawal should not be subject to income tax since it's 100% contributions.
However, because I'm withdrawing early (before 59-1/2) I am subject to the 10% penalty or is that waived too? I just went back through the 1040 and Schedules I don't think it's charging me the 10% penalty after all.
Thanks again.
Withdrawal of original contributions is never subject to income tax or the 10% penalty, regardless of your age or how old the Roth IRA is. Penalties and taxes only apply to withdrawal of conversions and earnings, and then it depends on the exact circumstances.
