Roth IRA Penalty for Early Distributions – Paul Gaulkin CPA

In the event a premature distribution is made from a Roth IRA to a taxpayer, the distribution will be subject to a 10 percent penalty of the amount that must be reported as a taxable distribution. Explaining the Penalty If an individual had contributed $10,000 to a Roth IRA and the value of the account was $15,000, the difference between the two ($5,000) would be considered earnings. If the individual chose to withdraw all of the Roth IRA funds and … Read more