ROTH HOLDING PERIOD
If i convert my IRA to a Roth (in 2010), must I wait for 5 years before taking the money out in the form of distributions – in order to receive the money tax free?
If i convert my IRA to a Roth (in 2010), must I wait for 5 years before taking the money out in the form of distributions – in order to receive the money tax free?
Permalink Submitted by Alan Spross on Tue, 2009-02-03 21:48
No. You can take out the money tax free the next day, but NOT penalty free unless you are over 59.5 or the distribution is after 2014 when the 5 year holding period for conversions has been satisfied.
If you have other Roth IRAs as well, regular distributions come out prior to conversions, and they are always tax and penalty free.