I rolled over a traditional IRA to a Roth in 2020, paid the tax on it, then withdrew the money from the Roth this year. Is that rollover amount subject to the 10% penalty? I am not 59.5, and the account has been open for less than 5 years. I see that contributions to Roth IRA can be withdrawn penalty free, just wanted to make sure the rollover is considered contribution basis as well. Thanks
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Yes, direct contribution can be withdrawn tax- and penalty-free. But conversions have to be in the account for 5 years before you withdraw them to avoid the 10% early withdrawal penalty.
Please see Distributions of conversion and certain rollover contributions within 5-year period for details.
Thank you for your help!
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