IRA Rollovers
Client over age 70 and is taking RMD’s.
If he does a Roth conversion does he still have to wait 5 years before withdrawing funds or was there anything passed in recent tax laws that waivered this requirement?
BH
Client over age 70 and is taking RMD’s.
If he does a Roth conversion does he still have to wait 5 years before withdrawing funds or was there anything passed in recent tax laws that waivered this requirement?
BH
Permalink Submitted by Alan - IRA critic on Mon, 2020-03-30 18:27
After age 59.5, no conversion must be held 5 years to avoid the penalty because there is no early distribution penalty after 59.5. But until the client has held a Roth 5 years and is over 59.5, any earnings distributed will be taxable. This has been the case since Roths were introduced in 1998.