Roth Distributions
I set up a Roth IRA account about 7 years ago. In December 2019, I converted some funds from my traditional IRA (in a TSP account) and added these funds to my existing Roth IRA account. I plan to carry out conversions from my traditional IRA to my Roth once a year in December until I turn 72. What are the distribution rules concerning my Roth? For example, if I wanted to, could I withdraw all of my Roth funds this month — including the money I placed into my Roth funds in December 2019? Or other? If other, should I open a different Roth account each time I convert to help track distributions? Thanks very much.
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-20 02:53
It’s pretty simple. If you are over 59.5 your Roth IRA is fully qualified and tax free. You could distribute the full balance any time including amounts you just converted, with no tax or penalty. If not yet 59.5, then you still must keep track of your Roth IRA basis, and the year and amount of your conversions UNLESS you are sure that you will take no distributions until after 59.5.