Are distributions that are less than the original contribution (not earnings) subject to income tax?

by Roth IRA Answer Gal on August 3, 2008




i.e. if I took a $1500 distribution from my roth ira, and my origial contribution was at least $1501, do I owe taxes for the $1500 distribution?

Kim
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{ 2 comments… read them below or add one }

tma 08.04.08 at 4:40 am

Mildred

distributions from a Roth IRA are not taxable. if you withraw them early however, you would be taxed on the earnings only, and subject to a 10% penalty.

bostonianinmo 08.06.08 at 12:43 pm

Susan

You must have held the Roth IRA for at least 5 full years to take a distribution of the original contribution without paying the 10%penalty tax.