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If I Did a Roth IRA conversion, do I still have to pay tax on the Roth IRA converted amount?

Converted IRA funds withdrawn before age 59 ½ are never subject to income tax. However, they will be subject to the 10% penalty for early distributions (unless another exception applies) if they have been in a Roth IRA for less than five years. Each conversion starts its own 5-year clock and the converted amounts are withdrawn on a first-in, first-out basis.

For more information on the self-directed Roth IRA, please contact a Roth IRA expert at 800-472-0646.

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