@eod-eric-expat just for clarification, CONTRIBUTIONS can always be distributed without tax and without the 10% penalty without meeting the 5 year requirement.
The rule are (assumes under 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 to the 10% penalty) |
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 to the 10% penalty) |
