Are SEPP Distributions for a Roth IRA Taxable when

L1: Are SEPP Distributions for a Roth IRA Taxable whenI am 40 years old and I have all of my retirement assets in ROTH IRAs that were rolled over from an IRA in 1998. I am considering a SEPP for the ROTH and my question is, “Would the distribution of earnings under a 72(t) payout schedule be tax free as they would have been had I been 59 1/2 or older? Or are they subject to ordinary income taxes like they would be under a traditional IRA? Additionally, I assume the distributions are taken from contributions first, then rollover portion next, then finally earnings. Is this correct?2002-09-09 07:49, By: Rocket, IP: [127.0.0.1]
L2: Are SEPP Distributions for a Roth IRA Taxable whenWhen withdrawing from a ROTH pre-59 1/2 you need to classify the contents of the ROTH into three buckets: regular contributions, conversion contributions & lastly earnings. If you wait until 2003 100% of your contributions & conversion contributions will come out first & completely tax free & thus no need to create a SEPP at all.Assuming at some later date you need to withdraw the earnings as well (but still pre-59 1/2), then all earnings withdrawn are subject to regular federal income tax plus the 10% penalty unless an exception, such as creating a SEPP, applies.TheBadgerwjstecker@wispertel.net2002-09-09 10:11, By: TheBadger, IP: [127.0.0.1]