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Roth IRA withdrawal during SEPP IRA Same year

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Last Updated On
ByHigh Tech Red Neck

L1: Roth IRA withdrawal during SEPP IRA Same year
Can I withdraw money from my Roth IRA, In fact I want to close it only 5k
While getting My SEPP from My other standard IRA
I am setting up a 56k per year SEPP in Jan 2019, I am 54, 55 in July
will closing My after Tax Roth IRA trigger 10% penalty on My SEPP
If so I can hurry and take the money now ! That Money if for my daughter.
I need to do this quick !!! Thanks for the Help Pete
2018-12-19 13:46, By: High Tech Red Neck, IP: [2601:588:8400:3c0:ccd4:1242:7675:c725]

L2: Roth IRA withdrawal during SEPP IRA Same year
Your Roth IRA is not related to your SEPP as long as you do not include the Roth IRA balance when calculating your SEPP distribution. Therefore, do NOT add the Roth balance to your TIRA balance when determining your SEPP calculation and your closing of your Roth IRA will not bust the SEPP.
You will have to know what your contribution (or conversion) basis is for your Roth IRA in order to report the Roth distribution on Form 8606. If your Roth value is higher than your contributions, the difference is Roth earnings. The earnings will be taxable and subject to 10% penalty since you are not holding your Roth IRA until 59.5.
2018-12-19 18:59, By: Alan S, IP: [72.24.226.251]

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