Roth IRA Contributions
A client needs to take some funds from his Roth IRA. We are trying to see what he can take out without taxes and/or penalties.
The account was opened well over 5 years ago. He is only 56 years old.
I know that he can take his contributions out any time without tax or penalty.
In 2010, his wife died, and her Roth IRA was rolled into his. Do her contributions count as if they were his?
Any other related information would be appreciated.
Permalink Submitted by Alan - IRA critic on Wed, 2019-05-08 23:50
Yes, her contributions (and conversions if any) are treated as if he made them, so her Roth basis is added to his. However, his now combined Roth IRA will not become qualified until he reaches 59.5, so if he distributes amounts that are earnings, the earnings will be subject to tax and penalty. And if he did conversions less than 5 year ago, distribution of his conversion money would be subject to the 10% penalty. Conversions come out only after their total regular contributions have been distributed tax and penalty free.