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Full Version: Any consequences for beneficiary who takes a partial distribution from
BenefitsLink Message Boards > Retirement Plans > IRAs and Roth IRAs
L Siebert CPA
Are there any consequences to a beneficiary for taking a partial distribution from a ROTH IRA that had just been converted from a traditional and then the owner died (he did not meet the five year holding period)?
BPickerCPA
Since the decedent died, all of the tax should be paid on the conversion. If any converted amount is withdrawn, there is no tax, and no penalty. If earnings are withdrawn, they will be taxed.
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