roth ira time requirement
Hello,
If I transfered $1k from a trad ira to create a new roth ira in 2003.
Then in 2004 I transferred $100k from the same trad ira to the roth ira.
Let’s call this ROTH A. All taxes were paid on the conversion. All funds are from rollover, no contributions.
Then in 2006, I transferred all of the ROTH A money into another brokerage roth account, let’s call that ROTH B.
I will be 59 on July 5, 2009.
Does moving the money from ROTH A to ROTH B negate any of the folowing:
As stated earlier, in 2008, the most I can withdraw tax and penalty free is 1k.
In 2009, I could withdraw up to 100k tax and penalty free.
In 2010, I can withdraw any remaining amounts in the Roth tax and penalty free as of January 5th.
Thank you.
Permalink Submitted by Alan Spross on Sat, 2008-06-14 00:02
Your understanding of the tax issues is correct. The transfer of custodians in 2006 is immaterial. You may want to supply them evidence of the date of your first Roth contribution, so they will know that your 2010 distributions are fully qualified and it would save you an 8606 for 2010 and later distributions.
Hopefully, your question is theoretical since such large distributions would destroy the Roth tax free earning potential.