Withdrawal taxes on converted Roth IRA

I want to know how soon I can withdraw from a Roth conversion without being subject to taxes.

I am age 61. I contributed to a Roth IRA more than five years ago and still have the balance. I also contributed to a Roth 401(k) more than five years ago and still have the balance. So I have the five year clock covered for those, but Roth conversions are supposed to have a separate five year clock for each conversion. I also have other rollover IRA and 401(k) balances.

Consider A) If I convert some rollover IRA money to a Roth IRA in 2023 and then withdraw money from the Roth conversion in 2024 (less than five years from conversion) – my understanding is:
1) no 10% penalty applies because I am older than age 59 ½,
2) the withdrawn amount up to the conversion principal amount is not subject to income tax,
3) If the withdrawal includes earnings on the conversion principal, is it subject to income tax since the conversion is less than five years old?

Consider B) If I convert some 401(k) money to a Roth IRA in 2023 and then withdraw money from the Roth conversion – same question.

If I do one or both of these conversions in 2023 then withdraw Roth money in 2024, do all the Roth IRAs somehow get aggregated and then I have to apply IRS ordering rules to determine which money is coming out first in order to determine taxation? I’ve been saving for a lifetime – so its time to start taking money out, but need to understand the rules to still save on taxes.

Thank you



Any 5 year conversion clocks cease upon attaining age 59.5. SInce both your Roth 401k and Roth IRA are now qualified, any distributions taken at any time will be tax free. That includes conversions you do in the future and withdraw anytime. Since these Roth accounts are qualified, the ordering rules no longer apply and you do not even need to report distributions on Form 8606. FInally, if you roll your Roth 401k into your Roth IRA, the entire balance in the Roth IRA is also qualified, so you are completely home free of any tax or penalty on your Roth accounts.



Thanks for speedy and helpful response.  Tax free income is going to be nice!  Go Roth!



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