Good article on Tax free Roth Withdrawals

[Al18]

Letj,
You cannot pay taxes due on the Roth conversion from the 401k if under 59 1/2 without paying a 10% penalty. The common method for avoiding the penalty is to setup an account with the IRS to make estimated quarterly tax payments.

 

[Letj]

Thank you all. Very helpful.

 

[Pointby2]

This is the only part that I need to know as our Roths are very old and we are over 59 1/2. Even if we are doing 401k conversions the next few years.

Step 5. Aim for qualified distributions of earnings. Earnings are not subject to tax if the distribution is a qualified distribution. Your distribution is qualified if it is made after you have owned any Roth IRA account for five years AND you are over the age of 59½, or are dead, or disabled, or taking the funds for a first-time home purchase.


If I'm missing something...