Roth Conversions Pre 59.5
I have a 56 year male who has $225k in his simple IRA, I just want to make sure that we can take lets say 30k out of there per year and convert it to a Roth IRA without a penalty because he has money in his checking account to pay the tax, I also want to make sure that we do not have to do a 72t to get the money out of his Simple IRA?
Zach
Permalink Submitted by Alan - IRA critic on Mon, 2015-07-13 23:45
The SIMPLE IRA has a 2 year waiting period from the date of the first SIMPLE IRA contribution before a distribution can be taken. Otherwise, a Roth conversion can be done with taxes due but no penalty. Once the Roth receives the conversion, if he withdraws the conversion money before 59.5, there is a 10% penalty.