Date: Tue, 18 Oct 2005 04:00:49 -0500
From: "Elle" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Rule 72(t) (IRA Penalty-Free Early Withdrawals) Query
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"Tad Borek"  wrote
snip
> have you weighed the downside of using the IRA as the source of funds?
> You'll give up tax-deferred growth of reinvested dividends & interest,
> because you'll be taking them out and (assumedly) paying tax on them, at
> ordinary-income rates. Usually that makes the IRA the last-choice source
> of funds.

Over 75% of my IRA is in a Roth. So it's not tax-deferred growth for the
Roth. Instead, it's no taxes at all, should I follow the usual rules for
withdrawal starting sometime after age 59.5.

My understanding is I wouldn't pay any taxes on withdrawals from the Roth
under rule 72(t), because, for one thing, I've already paid taxes on my Roth
contributions. Have you heard otherwise?

Let me leave the other questions until this point is resolved. I agree it's
a big one.

(I have done some IRA conversions--traditional to Roth--over the years and
am aware I should check on, say, five-year time limits, before I can touch
the converted funds.)