Roth Distributions (Conversions And Earnings) Flashcards
Withdrawal of converted Roth assets
(Meets 5-year holding period)
• No income tax
• No early withdrawal penalty
Withdrawal of converted Roth assets
(Does Not Meet 5-year holding period BUT Meets Special Purpose)
• No income tax
• No early withdrawal penalt
Withdrawal of converted Roth assets
(Does Not Meet 5-year holding period and NO Special Purpose)
• No income tax
• 10% early withdrawal penalty
What are the special purposes (for Roth Conversion withdrawal taxation)
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
Withdrawal of Roth earnings
- Fails to meet 5-yr holding
- No special purpose
- Income tax
- 10% early withdrawal penalty
Withdrawal of Roth earnings
- Meets 5-yr holding
- No triggering event or special purpose
- Income tax
- 10% early withdrawal penalty
Withdrawal of Roth earnings
- Meets 5-yr holding
- Meets special purpose (define)
• Income tax
• No early withdrawal penalty
Special Purposes
- Medical expenses
- Medical insurance premiums while unemployed
- Substantially equal periodic payments
- Higher education expenses
- Birth/adoption
Withdrawal of Roth earnings
- Fails to meet 5-yr holding
- Meets special purpose (define)
• 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
Withdrawal of Roth earnings
- Meets 5-yr holding
- Triggering Events QUALIFIED (define)
• 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)