Closing a Roth IRA ?

Submitted by Richard Rea on Sun, 2012-10-14 01:38

I opened a Roth IRA in February 2004 for the year 2003 with a $3,500 contribution.

At the time it was my understanding that if I was to do a Roth Conversion from my soon to be Rollover IRA from my company 401k plan I would need a Roth IRA to dump the conversion into. I now believe that was bad information and haven’t done any Roth Conversion at all.

I did convert my company 401k plan to a Rollover IRA but that,s as far as I have gone.

So now I just to clean things up a bit and want to close this ill concevied Roth IRA and withdrawal the $3,535 in it.

It has been there for 8+ years and I am 65 now.

Thanks



Submitted by Alan Spross on Sun, 2012-10-14 01:54

There is not enough information to know whether the original Roth contribution was a good or bad idea, or whether closing it is a good or bad idea.

But if you are asking about the tax treatment for a total distribution, it will be tax free including the $35 of gains as your Roth is fully qualified (5 years and you are over 59.5).
All you do is report 3,535 on line 15a of Form 1040 and -0- on 15b.

Submitted by Richard Rea on Sun, 2012-10-14 02:56

Thanks Alan

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