Jump to content
ATX Community

Roth Conversion, then Roth Distribution


MEHCPA

Recommended Posts

The taxpayer converted a $21000 traditional IRA to a Roth IRA in 2010. Later in 2010, the taxpayer took a $6000 distribution from the Roth IRA (He had no other Roth $$, it was from the converted amount).

Is the Roth distribution tax fee? Technically, he doesn't pay the tax on the conversion until 2011 and 2012. Does he have basis for the 2010 distribution??

Link to comment
Share on other sites

Let me re-phrase this question. I know the $6000 distribution is subject to the 10% penalty because of the early distribution on the conversion, but is the regular tax that was to be deferred until 2011/2012 accelerated back into 2010 on the amount distributed?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...