Roth IRA Conversions
Can a 42 yr. old convert a traditional IRA into a Roth IRA and then withdraw any of the newly converted Roth IRA money prior to 59 1/2 without penalty?
Can a 42 yr. old convert a traditional IRA into a Roth IRA and then withdraw any of the newly converted Roth IRA money prior to 59 1/2 without penalty?
Permalink Submitted by Alan - IRA critic on Tue, 2017-10-24 00:40
For the first 5 years including the conversion year, a 10% penalty applies to distributions of the taxable conversion money. Starting in the 6 th year the penalty is eliminated. Note that there are also some special exceptions to the penalty that could apply in the first 5 years as well.