I'm considering a Roth Conversion for 2021.
My understanding is that 1/1/2026 (5 years from 1/1/2021) I could withdraw with no penalties.
IRS Publication 590-B Figure 2-1 first question is:
Has it been at least 5 years from the beginning of the
year for which you frst set up and contributed to a
Roth IRA?
I'm struggling with that question ".... a Roth IRA" that I set up more than 5 years ago, or
the Roth IRA created by a 2021 conversion.
My hunch is that if I'll need any of that converted before 2026, I'll be paying a
penalty because the distribution would be unqualified.
If correct, I'm better off just taking the qualified distribution in 2021.
Is my understanding correct?