Roth-5 year withdrawal penalty
I am 70 years old and have more than one Roth account. The oldest one is over 5 years old. If I were to withdraw funds from one of the other Roths that has not met the 5 year holding time, Will I be hit with a IRS penalty? Thank you Ken
Permalink Submitted by Al Fry on Wed, 2008-12-03 16:57
There is no IRS penalty, since you are over age 59 1/2. In addition, the withdrawal should be income tax-free, since you have one Roth over 5 years old; and you meet one of the qualifying events (being over age 59 1/2). This is why EVERYONE, regardless of age, should have a Roth, if they qualify, to get the 5-year clock running.