5 year clock on the 10% penalty
I think I’m clear that the first Roth IRA contribution/conversion starts the 5 year clock needed to make the investment earnings tax free
My question relates to the 5 year clock on the 10% penalty and whether there’s a separate 5 year clock for each conversion.
Assume I’m age 45, have no Roth account yet and convert an IRA to Roth on 1/4/2010. If I make another conversion in 2013 does that start another 5 year clock for that amount or do I get to count back to the 2010 conversion?
Permalink Submitted by Anonymous (not verified) on Mon, 2009-11-23 17:40
Simply put:
There is a separate five year clock for each conversion with respect to the 10% penalty. Once you cross the 59 1/2 age you only need [u]any[/u] five year tenure in a Roth.
pmk