I like this table by kawill from the fairmark.com site:
(almost no thinking required!); for clarification........conversions are withdrawn (after contributions)
in chronological order starting w/ the earliest. Within each conversion, there may be 2 parts...the taxable
part and the non-taxable part (if there was basis.....non-deductible contributions). Within each conversion,
the taxable part is withdrawn first, then the non-taxable part.
Re: Roth IRA Rules - Table Approach
Posted by: KAWill, March 12, 2018 06:27PM
......................
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
No Taxes
No Penalties
The Roth IRA Distribution Table shows the ordering rules as presented in IRS Publication 590-B.
This table is not applicable to timely distributions of excess contributions, return of regular contributions, or the Roth IRA Exceptions listed in IRS Publication 590-B.
Top