liquidity of a Roth IRA
Age 45 client will make a post tax contribution to a new IRA (has no other IRAs) and then convert to a Roth. How soon after the conversion can basis be withdrawn free from tax and/or penalty?
Age 45 client will make a post tax contribution to a new IRA (has no other IRAs) and then convert to a Roth. How soon after the conversion can basis be withdrawn free from tax and/or penalty?
Permalink Submitted by Alan - IRA critic on Thu, 2015-07-30 17:54
Immediately. The conversion 5 year holding period to avoid the 10% penalty only applies to the pre tax portion of a conversion. This conversion had no pre tax portion.