Roth Conversions 5 year rule

[Lakewood90712]

Have a roth ira , a non roth ira , a 457 pretax , and a 401K pretax. I am over 59 1/2.

Are funds from a 401 or 457 that are rolled into a roth after paying tax , subject to a 5 year holding rule ?

 

[pb4uski]

How long have you had the Roth?

 

[Lakewood90712]

How long have you had the Roth?

About 10 years

 

[kaneohe]

Re: Roth IRA Rules - Table Approach
Posted by: KAWill (IP Logged)
Date: October 14, 2010 11:57PM


Roth IRA Distribution Table

UNDER AGE 59.5
FIVE YEAR CONVERSION HOLDING PERIOD NOT MET

Contributions: Tax-No; Penalty-No
Conversions: Tax-No; Penalty-Yes (Taxable Portion)
Conversions: Tax-No ;Penalty-No (Nontaxable Portion)
Earnings: Tax-Yes; Penalty-Yes

UNDER AGE 59.5
FIVE YEAR CONVERSION HOLDING PERIOD MET

Contributions: Tax-No; Penalty-No
Conversions: Tax-No; Penalty-No (Taxable Portion)
Conversions: Tax-No; Penalty-No (Nontaxable Portion)
Earnings: Tax-Yes; Penalty-Yes

OVER AGE 59.5
LESS THAN FIVE YEARS SINCE OPENING FIRST ROTH IRA

Contributions: Tax-No ;Penalty-No
Conversions: Tax-No; Penalty-No (Taxable Portion)
Conversions: Tax-No; Penalty-No (Nontaxable Portion)
Earnings: Tax-Yes; Penalty-No

OVER AGE 59.5
FIVE YEARS OR MORE SINCE OPENING FIRST ROTH IRA

All Distributions Are Qualified

then you fall in the last category : age> 59.5 and first Roth older than 5 yrs.
Good to go ..........withdraw any time ....no tax/penalty

note that even if your Roth were less than 5 yrs old (the category above), there would be no restrictions on withdrawing the conversions........just tax on the earnings which come out last.