I started this thread so as not to convolute the others on the 5 year rule.
I didn't see this addressed in the other threads.
Please re-direct me if it was covered elsewhere and I missed it.
I don't want to open more Roth accounts mainly because the rebalancing becomes even more difficult given the number of accounts we already have :-(
If I convert into the existing Roth IRA, will I be able to tell as I withdraw the funds whether the distribution will be "qualified" or "not qualified"? I think I read that the "custodian" makes that call and issues the appropriate tax form that implements the 5 year rule.
While my intent is to leave the converted funds and earnings in for the full 5 years, I'm certain that I will need to take distributions from the pre-conversion balance during the next 5 years.
I've already been accused of being obsessed with taxes by my bride and don't want to make it worse
While it's easier to make a new account, I'd like to have the least amount of pain over time with:
- rebalancing over the fewest number of accounts
- determining BEFORE income tax filing time what the ramifications are
Real world experience is greatly appreciated as this is my first conversion.
Last day of w*rk is 12/31/2021!
I didn't see this addressed in the other threads.
Please re-direct me if it was covered elsewhere and I missed it.
I don't want to open more Roth accounts mainly because the rebalancing becomes even more difficult given the number of accounts we already have :-(
If I convert into the existing Roth IRA, will I be able to tell as I withdraw the funds whether the distribution will be "qualified" or "not qualified"? I think I read that the "custodian" makes that call and issues the appropriate tax form that implements the 5 year rule.
While my intent is to leave the converted funds and earnings in for the full 5 years, I'm certain that I will need to take distributions from the pre-conversion balance during the next 5 years.
I've already been accused of being obsessed with taxes by my bride and don't want to make it worse
While it's easier to make a new account, I'd like to have the least amount of pain over time with:
- rebalancing over the fewest number of accounts
- determining BEFORE income tax filing time what the ramifications are
Real world experience is greatly appreciated as this is my first conversion.
Last day of w*rk is 12/31/2021!