Roth Qualified Distributions
I want to be sure of this. Here are the facts – I am now 70 years old; my Roth IRA was opened in 2010 via my first conversion; I have made conversions every year since then; my last conversion will be in 2025; I want to start taking distributions from the Roth IRA in 2029; in 2029, I will have easily met both the age rule and the 5-years-since-first-funding rule; but 2029 will NOT have been 5 years since the final conversion in 2025; so, will my 2029 distribution be a Qualified Distribution? I think it will be, but the language can be very confusing! THANKS
Permalink Submitted by Alan - IRA critic on Tue, 2023-04-04 16:13
Yes, it will be qualified. Your Roth has been fully qualified since 2015. The 5 year holding period for conversions also does not apply once you reach 59.5, so you also could have taken out conversion money penalty free way back when you reached 59.5. You will get a 1099R for future distributions, but you do not need to complete Part III of that form to report Roth distributions that are qualified. The distribution would only be entered on line 4a of Form 1040. You will need to report any conversions on Form 8606 like you have been.