Roth 5 yrs rule
client started roth in november of 2008.
Am i correct in stating that as of Jan 2013, his 5yr rule is completed and he can start withdrawaling money from his roth ira tax free (he is 60 yrs old)?
or
Does he have to wait until Jan of 2014 to complete the 5yr rule?
Thankyou,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2013-01-10 22:30
Douglas, his Roth is fully qualified and tax free as of 1/1/2013.
Permalink Submitted by Douglas Bauerband on Wed, 2013-01-16 20:09
He actually started his roth in Jan of 2009 but funded his roth for 2008.this means that he has to wait until Jan of 2014 for 5yr rule or is he still fully qualified for the 5yr rule?Thank you.Douglas
Permalink Submitted by Alan - IRA critic on Wed, 2013-01-16 23:45
Fully qualified now as 2008 counts as the first year of 5. This assumes his contribution was a regular contribution, not a conversion.