Roth Distributions (Conversions And Earnings) Flashcards

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1
Q

Withdrawal of converted Roth assets

(Meets 5-year holding period)

A

• No income tax
• No early withdrawal penalty

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2
Q

Withdrawal of converted Roth assets

(Does Not Meet 5-year holding period BUT Meets Special Purpose)

A

• No income tax
• No early withdrawal penalt

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3
Q

Withdrawal of converted Roth assets

(Does Not Meet 5-year holding period and NO Special Purpose)

A

• No income tax
• 10% early withdrawal penalty

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4
Q

What are the special purposes (for Roth Conversion withdrawal taxation)

A

Special Purposes
1. 59½ or older
2. Death
3. Disability
4. First home purchase (up to $10,000)
5. Medical expenses
6. Medical insurance premiums while unemployed
7. Substantially equal periodic payments
8. Higher education expenses
9. Birth/adoption

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5
Q

Withdrawal of Roth earnings
- Fails to meet 5-yr holding
- No special purpose

A
  • Income tax
  • 10% early withdrawal penalty
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6
Q

Withdrawal of Roth earnings
- Meets 5-yr holding
- No triggering event or special purpose

A
  • Income tax
  • 10% early withdrawal penalty
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7
Q

Withdrawal of Roth earnings
- Meets 5-yr holding
- Meets special purpose (define)

A

• Income tax
No early withdrawal penalty

Special Purposes
- Medical expenses
- Medical insurance premiums while unemployed
- Substantially equal periodic payments
- Higher education expenses
- Birth/adoption

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8
Q

Withdrawal of Roth earnings
- Fails to meet 5-yr holding
- Meets special purpose (define)

A

• Income tax
No early withdrawal penalty

Special Purposes
1. 59½ or older
2. Death
3. Disability
4. First home purchase (up to $10,000)
5. Medical expenses
6. Medical insurance premiums while unemployed
7. Substantially equal periodic payments
8. Higher education expenses
9. Birth/adoption

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9
Q

Withdrawal of Roth earnings
- Meets 5-yr holding
- Triggering Events QUALIFIED (define)

A

No income tax
No early withdrawal penalty

Triggering Events QUALIFIED
1. 59½ or older
2. Death
3. Disability
4. First home purchase (up to $10,000)

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