ROTH IRA Distributions 59 1/2
If clients converted their IRA to ROTH IRA and the accounts have not been open for 5 years, can the client take distributions from the conversions without penalty? Clients are over 59 1/2.
Does the 5 year rule apply to the amount converted too?
Permalink Submitted by Alan - IRA critic on Wed, 2021-09-15 15:13
Yes, all early withdrawal penalties end at 59.5 and any open conversion 5 year holding periods also end at 59.5. However, earnings on all contributions and conversions remain taxable until 5 years has passed from the year of the first Roth contribution of any kind.