Roth Solo 401k Distributions | Excise Tax

QUESTION: I’m thinking of converting my Solo 401k to a Roth Solo 401k, but first want to know if the excise taxes apply to Roth Solo 401k distributions?

ANSWER: Yes the 10 percent early distribution penalty applies to Roth Solo 401k distributions.  For instance, if a distribution from a Roth Solo 401k account is taken before you turn age 591/2 and none of the exceptions (e.g., a disability, hardship, and death) to the 10 percent premature distribution penalty applies, the full or partial distribution (both contributions and earnings) will be subject to the 10 percent penalty.