Withdraw for a recently convert IRA
This year the client converted their Traditional IRA to a ROTH.
They do not have an additional tax liability. They have a 10% penalty because the funds have been in the ROTH IRA less than 5 years? The conversion all took place this year within months of each other.
At what point do they actually pay the penalty tax?
Permalink Submitted by Alan - IRA critic on Thu, 2013-10-31 23:44
The penalty (if they do not qualify for a penalty exception) is paid with their 2013 tax return. The penalty is reported on Part I of Form 5329.