I am 64 years old and retired. I owed tax last year to both the IRS and the state. Enough so that I got a disbursement from my Roth IRA to cover the taxes. Will I owe 10% on the disbursement?
AI accountant’s answer:
Since you are 64 years old, your disbursement from your Roth IRA will not be subject to the 10% early withdrawal penalty if you meet the following conditions:
1. Your Roth IRA must have been open for at least five years. 2. The distribution is taken after you turn 59 and a half years old.
If both these conditions are met, your Roth IRA distribution will be both tax-free and penalty-free. This applies to the federal tax. State tax rules may vary, so you should check with your state's tax department or consult a tax professional for specific guidance on state taxes.
Correct.
Keeper’s AI Accountant V2
V2 is still a fine-tuned instance of GPT-4. Improvements over V1 include more comprehensive tax code embeddings, and a better chain-of-reasoning retrieval system.