@dmertz wrote:
"The $800 earnings will be taxable plus 10% penalty if you are under age 59-1/2. "
Almost certainly not. There will likely be no penalty because the distribution of the $800 will almost certainly be from Roth IRA contribution basis acquired from the permissible contributions made for earlier years.
Yes, sorry about that. As long as there is prior contribution basis in the Roth IRA, the withdrawal won't be taxable (depends on your history of other prior contributions and withdrawals).
