Stupid Question about Roth distribution

Submitted by Mobey on Thu, 2016-04-14 16:01

I apologize in advance but these Roth distr rules always mess me up.

Client is over 59-1/2
Started Roth in Nov 2011 with a conversion
Second conversion in Nov 2012

He wants to withdraw all funds now with earnings.

I assume he’ll have no tax or penalty.

Is this correct?

Thanks in Advance.



Submitted by Alan - IRA critic on Thu, 2016-04-14 16:47

Because his 5 year holding period was completed 12/31/2015 and he is over 59.5, his Roth is now fully qualified. The entire balance can be withdrawn tax and penalty free. No 8606 is needed to report the distribution either. The balance goes only on line 15a of his 2016 return.

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