I did my first Roth IRA distribution this week and was amazed to discover that Vanguard stated that IRS rules require a minimum 10% tax withholding. We've never had to make withholdings when doing IRA to Roth conversions even though they are taxable by the IRS.* No tax will be due on my Roth withdrawals because I have had a Roth IRA for over 10 years and I am 66 years old so I don't understand the logic.* However, it is no big deal for me since I have to make estimated tax payments to pay for taxes on other US income such as our private pensions, so the withholding just means paying less in estimated taxes.
I finished doing IRA to Roth conversions 3 years ago, and my wife made her last Roth conversion this month.
Does this happen with others making Roth distributions or is it just because I reside overseas?
I finished doing IRA to Roth conversions 3 years ago, and my wife made her last Roth conversion this month.
Does this happen with others making Roth distributions or is it just because I reside overseas?