The Taxes are based on the deduction you took when contributing to the account and if you have the early withdrawal penalty, it is that, a penalty to punish you. 

This is much better than realizing any temporary tax savings like contributing to a traditional IRA or 401(k).

Looking forward to learning from and hopefully contributing to this community.

I look forward to contributing and meeting like-minded smart people.Lisa

Then they can have some spending money and start contributing to a Roth IRA to build some good habits.Thanks again for the encouragement and have a great 2017!

I can't wait until I can contribute what knowledge I have to help make the path easier for others.I am looking forward to being a part of such a wonderful community!

We own 3 units currently.I am realizing that there are some advantages to the Solo 401K (yes I qualify) such as not having UDFI taxation when borrowing which I intend to do along with much higher contribution limits.

I can also just withdrawal the contribution amount and avoid the penalty and tax.

I've partnered in two SFH rentals that I ended up selling and I'm currently working on one for myself.Shout out to all the contributing members here!

@Victoria CreightonPro-rata rules apply to non-deductible IRAs-an IRA where you make annual non-deductible contributions.So as long as you don't have any non-deductible IRA contributions, Roth IRA conversions are neither subject to the pro-rata rule or the 10% early distribution penalty at time of conversion.