Roth 5 year rule and Roth Converstion
I know the 5 year applies to beneficiaries based on the date the original owner opened account but are the RMD’s exempt from penalty if its before 5 years? If not exempt do the ordering rules apply so that they RMD could be contributions first to avoid penalty?
Also, is there a different 5 year rule for Conversions? Meaning if you have a Roth IRA for 2 years and then convert some TIRA funds to Roth do they get credit for the previous 2 years?
In line with this question if you convert mutiple years, is each conversion subject to a 5 year rule or the original conversion starts the clock for all future conversions?
I know this is alot of questions so thank you very much in advance.
-Nick
Permalink Submitted by Alan - IRA critic on Fri, 2014-06-20 19:06
Permalink Submitted by tomtom on Sat, 2014-06-21 15:00
Thank-you Alan-iracritic !!Reading Mr Slotts books and various postings here I have struggled with the nuances of just what criteria make an Inherited Roth qualified regarding earnings. It must be exasperating reviewing this detail in so many ways. IMHO this #2 bullet point explanation nails it.Unless I misunderstand, of course… Regards, tomtom