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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: jimleon who wrote (711)	3/5/1998 9:20:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

Jim, Good Point! I just looked it up... The $2,000 contribution that you paid tax on before it went into the ROTH, CAN COME OUT - TAX-FREE and PENALTY FREE. (but I suspect that the 1997/1998 "scam" discussed earlier will be prohibited - see the 5 year rule) . The EARNINGS within the ROTH are subject to TAXATION and to the 10% Early distribution penalty UNLESS you meet an exception. . One exception, for instance, is if you are over 59.5 years of age, AND your ROTH was established more than 5 years ago. . There are other exceptions, like 1st time home buyers, medical expense, death, education payments and so on as Congress tries to Social Engineer from inside the Beltway. . Colin