My question is whether I face a 10% penalty on withdrawing money from a Roth IRA after a mega backdoor Roth. Assume I am younger than 59 years old.
In more detail:
- I contribute $10K after-tax to my 401(k). (My plan allows me to do this.)
- I do an in-service conversion to a Roth IRA. I now have $10K in my Roth IRA.
- Now I need the money. I withdraw $10K from my Roth IRA.
Do I just receive the $10K with no penalty and no taxes (since this is after tax money)?