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?

Question

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.

Comment from reviewer

Jacques Seys, CPA

Not Correct.

Looks good

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This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

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