Roth Distributions

[gman]

Taxpayer contributes to a roth for say 3 years. 5,000 per year--interest totaling 500.00

contribution total 15000.00
interest 500.00
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taxpayer waits 5 years and withdrawls all, --the 500.00 is the only thing taxable and subject to 10% penalty ---correct?

If taxpayer rolled all over or at least interest over, none would be taxable??

thanks

[veritas]

He doesn't need to rollover the earnings.

He can just withdraw the contributions.

[gman]

Earnings

Would Be Tax Free If Rolled Over.

[Roland Slugg]

How old?

Is/was the T/P over 59½ when he took the distribution? If so, nothing is taxable. If under 59½, the amount withdrawn that exceeds all contributions ... i.e. the earnings ... is taxable AND is subject to the 10% penalty.