Tax consequences of liquidating a roth ira Old women free chat show online
Roth IRA's have many benefits compared to traditional IRA's.
For example, if the first Roth IRA contribution was made for 2017, the five-year period begins Jan 1, 2017.
Distributions of earnings that are part of a nonqualified distribution are taxable and may be subject to an additional 10% early-distribution penalty.
There is a distinction regarding which distributions are qualified and are thus exempt from taxes and penalties.
To be qualified, a distribution must meet both of the following two categories of requirements: *For this purpose, all Roth IRAs of an individual are counted for determining the five-year period.
For example, if an individual established a Roth IRA at ABC Brokerage in 2017, and established a second Roth IRA at XYZ Brokerage in 2018, the five-year period begins in 2017.