Roth 5 year rule on conversions from an IRA prior to 59 1/2
I would like to start annual conversions from an IRA to a Roth IRA at age 57 and continue them past age 59 1/2. Are all conversions like this subject to the 5 year rule or are conversions after 59 1/2 not subject to the 5 year rule.
Permalink Submitted by Alan - IRA critic on Wed, 2014-02-12 16:25
Conversions done before 59.5 are subject to the 5 year holding period, but upon reaching 59.5 the holding period ends even for conversions done before 59.5. The 10% recapture tax only applies to the taxable portion of these conversions.