Roth IRA, Traditional IRA, 401K » owed http://www.iraroth.net IRA Questions and Answers Tue, 17 Jan 2012 00:09:43 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Q&A: In my case, can I take the owed taxes from the Roth IRA to pay the taxes due without incurring penalties, etc? http://www.iraroth.net/2011/03/qa-in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/ http://www.iraroth.net/2011/03/qa-in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/#comments Mon, 21 Mar 2011 22:24:05 +0000 admin http://www.iraroth.net/2011/03/qa-in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/ Question by Sterling J: In my case, can I take the owed taxes from the Roth IRA to pay the taxes due without incurring penalties, etc?
I converted a Traditional IRA to a Roth IRA. The federal taxes were withheld – all is well with that (I think). The state taxes were not withheld. Now I owe the state a bunch of money. Can I take the owed amount (or less) from the Roth IRA to pay the taxes due without incurring penalties, etc? Would this be considered a “premature withdrawal”?

Best answer:

Answer by chatsplas@sbcglobal.net
Don’t do it.
Yes it would be premature withdrawal.
You know you can undo the conversion? And convert part of the money this year and part next year. Up to 4/15 you can.

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]]> http://www.iraroth.net/2011/03/qa-in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/feed/ 2 In my case, can I take the owed taxes from the Roth IRA to pay the taxes due without incurring penalties, etc? http://www.iraroth.net/2009/12/in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/ http://www.iraroth.net/2009/12/in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/#comments Wed, 16 Dec 2009 16:42:49 +0000 admin http://www.iraroth.net/2009/12/in-my-case-can-i-take-the-owed-taxes-from-the-roth-ira-to-pay-the-taxes-due-without-incurring-penalties-etc/ I converted a Traditional IRA to a Roth IRA. The federal taxes were withheld – all is well with that (I think). The state taxes were not withheld. Now I owe the state a bunch of money. Can I take the owed amount (or less) from the Roth IRA to pay the taxes due without incurring penalties, etc? Would this be considered a “premature withdrawal”?

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