Are conversion and contributory amounts (that have had the tax paid on them)to a Roth subject to the premature withdrawal penalty if withdrawn after the five year holding period, but before the taxpayer is 59.5?

Contributed amounts can be withdrawn at any time without penalty.

Converted amounts will be subject to penalty if withdrawn within the first five years starting with the year of conversion, if you are under 59½. After the five years have elapsed, there is no penalty for withdrawing the converted amount.

Thanks so much for responding, but I am still not convinced. AOLs Tax Logic site leads one to believe that the contributory and conversion amounts ARE subject to the 10% penalty, and if so, Mr. Pickers last statement would seem to be erroneous; but, as I have said, there is nothing explicit that I have seen. If the cont. and conv. amounts are subject to the 10% penalty if withdrawn after 5 years/before 59.5, then there is no difference bt. Roth and regular IRA regarding withdrawal of principal (i.e., contr. and conv. amts). Whaddya think?

[This message has been edited by ncarl55469 (edited 01-03-99).]

See "Can I take out my Roth IRA contribution, not earnings,without tax or penalty? If so, does it need to be after 5 years?" for a discussion of this topic.