new waiting period for Roth conversions
When you do a conversion from an IRA and combine it with an existing Roth does it have to serve a new waiting period. 591/2 and 5 year? or does original contribution serve
Thanks
SC
When you do a conversion from an IRA and combine it with an existing Roth does it have to serve a new waiting period. 591/2 and 5 year? or does original contribution serve
Thanks
SC
Permalink Submitted by Alan - IRA critic on Wed, 2013-11-06 18:16
There are two 5 year periods, one for earnings to be tax free and that starts with the first Roth contribution of any kind. A new holding period for this is not needed. However, conversions in each year have their own 5 year holding period to avoid a penalty, so a new one of these applies to each year’s conversions. This requirement ends at 59.5.