Taking money out of a coverted Roth IRA
I am 68 considering converting an IRA CD to a Roth CD. Do I understand right that I can take the Roth principal money out … but must wait 5 yrs. to take out any earned monies (ie interest) tax free?
I am 68 considering converting an IRA CD to a Roth CD. Do I understand right that I can take the Roth principal money out … but must wait 5 yrs. to take out any earned monies (ie interest) tax free?
Permalink Submitted by Alan Spross on Thu, 2010-12-30 04:33
That is correct. The earnings also become tax free starting in the 6th year, when your Roth becomes “qualified”. Until that time, any distributions you take are deemed to come from your regular and conversion contributions first, and earnings last.