Ask Experts Questions for FREE Help !
    rarkema's Avatar
    rarkema Posts: 1, Reputation: 1
    New Member

    Mar 10, 2012, 02:11 PM
    10% penalty when you pay your taxes from IRA during Roth IRA conversion?
    If you are using money of an IRA to pay taxes during roth ira conversion, are the amounts taken out to pay taxes subject to the 10% early withdrawal penalty?
    newacct's Avatar
    newacct Posts: 321, Reputation: 21
    Full Member

    Mar 10, 2012, 10:55 PM

    You must normally pay taxes on a conversion out of pocket. If you use the IRA money to do it, then that is equivalent to taking a distribution from the IRA and using that to pay taxes for the conversion of the remainder. The distribution is subject to penalty like any other distribution.
    chat8102's Avatar
    chat8102 Posts: 7, Reputation: 1
    New Member

    Apr 5, 2012, 11:30 AM
    Deleted a wrong post

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Cashing out part of IRA or ROTH IRA due to Hardship [ 1 Answers ]

Can you tell me what are the reasons that you can claim hardship on an IRA or ROTH IRA? I have been unemployed for over a year and need to cashing some of my IRA to just pay bills and live. Are there penalties and taxes that need to be paid on this money? Thanks,

Should I/how to convert IRA-BDA to a Roth IRA [ 0 Answers ]

A few years ago I inherited an IRA. It's now referred to as an IRA-BDA. It is all one mutual fund. As it stands now, when I withdraw from it I have the option of taking out 10-15% taxes on the amount withdrawn, or waiting until tax time to pay it. 1.Would it be more beneficial to change my...

Needed ira early tax penalty must be paid from ira too [ 2 Answers ]

:( Unfortunately My Retirement Was Placed In An Ira. Thought I Would Work Longer. Unemployed Only Money Is My Ira I Have Been Using It Now For Three Years To Live On And I'm Currently 58. Each Year I Owe Taxes On The Previous Year And Penalties, But My Only Money Is The Ira So I Must Take...

Taxes on Roth IRA withdrawal [ 1 Answers ]

Do I have to pay taxes on interest earned from a Roth IRA Withdrawl after age 65?

View more questions Search