Rainman1966
Level 3

He has no basis as he withdrew all of his contributions in prior years.  If he would have waited 30 days in order to meet the 59 1/2 rule he would have had no taxable income from the withdrawal.  Now he has a taxable Roth distribution plus the 10% penalty.  I was hoping that someone might have encountered this problem and knew of a way to get the penalty waved.  Probably an impossibility.

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