mwcpa
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Joined: Jan 7, 2011 6:35:43 GMT -5
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Post by mwcpa on Mar 5, 2014 21:33:32 GMT -5
The penalty is 10 percent and the tax is at your effective tax rate.
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TheOtherMe
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Post by TheOtherMe on Mar 5, 2014 22:07:57 GMT -5
Unless you are over 59 1/2. Since you are asking about penalties, I'm guessing you are not that old.
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Mar 6, 2014 5:34:23 GMT -5
correct, you would not pay tax on the "basis" in the Roth, assuming you followed all the rules.
example... have 50,000 in a Roth style account. Basis is 30,000. Withdrawal 30,000. You are under 59 1/2.
Tax free....
Take more than 30,000, the amount above 30,000 is subject to tax and penalty. |
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