@ndy856 wrote:
wait, the 10% penalty will only be on the taxable amount (box 2a) ? and no penalty will be on the Gross Distribution (box1) the $ amount that I withdrew?
Correct. Your original contribution is being returned to you as if it never happened. Only the earnings are taxable and subject to an early distribution penalty if under age 59 1/2.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
