Discussion:10% penalty on Roth distribution
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Discussion Forum Index --> Tax Questions --> 10% penalty on Roth distribution
| 26 January 2006 | |
| If taxpayer has transferred for 5 years from an IRA to a Roth but is not 591/2 is he responsible for the 10% penalty? | |
| 26 January 2006 | |
A conversion of a traditional IRA to a Roth IRA is generally treated as a taxable distribution. It is allowed just if your MAGI is $100, 000 or less. Otherwise, the convertion could be considered "failed" that will result in tax penalties.
Form 8606 If He made the conversion by receiving a distribution from his traditional IRA and rolling it over to a Roth IRS; the rollover must be completed within 60 days from the time he received the distribution. | |
| 1 February 2006 | |
| Hi, the client will not be responsible the 10% penalty for a withdrawal fr the ROTH IRA up to $10,000 if a first time home buyer (ever 2 yrs 1 day). | |
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