Roth after 5 years

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L1: Roth after 5 yearsRe: Earlier PostHi,Are Roth Distributions under 72t taxable at regular income tax rates or are they tax free like distributions after age 59 1/2?Does the 10% penalty apply under 72t to Roth distributions?Thanks! By: TheBadger Date: 5/22/2002 Subject: Roth Distribution You have just hit the big negative about ROTH IRAs (although I still believe the positives win out): Any distribution from a ROTH that is above and beyond your basis in the account and is done so before 5 years and before age 59 1/2 is BOTH taxed as regular income AND is surtaxed under 72(t) for an additional 10%.TheBadger By: Distriby Date: 5/22/2002 Subject: Roth Distribution How about after 5 years in the IRA? Are distributions taxable at that point?Thanks! I cannot get a straight answer from the IRS about this. Do you know how this is taxed?Thanks!2002-05-28 12:07, By: Distriby, IP: [127.0.0.1]
L2: Roth after 5 yearsHello Distriby:There is no 5 year rule on regular IRAs. On the presumption that you no basis (typically caused by after-tax contributions to an IRA) in the IRA in question, then 100% of the IRA withdrawal is always 100% taxed as ordinary income. Further, 100% of the distribution is further 10% surtaxed UNLESS an exception applies:1. Age 59 1/22. Death3. Disability4. SEPPs5. Separation of Service at age 556. Special Stock Dividends7. Tax Levies8. Medical Expenses9. QDROs10. Health Insurance Premiums11. Higher Education12. First Home PurchaseAll 12 exceptions can apply to qualified plan account balances (401a, 401k, 403b plans). Exceptions 5 & 9 are unavailable for IRAs.TheBadger2002-05-28 12:47, By: TheBadger, IP: [127.0.0.1]