5 Year Traditional to Roth IRA Conversion Rule
If I created a Roth IRA 10 years ago and want to convert some of a Traditional IRA to the Roth, adding to the existing Roth assets now, how does the 5 Year Wait rule maybe apply, or does it at all? I am 62 now. I have researched numerous places and cant seem to find a definite answer to my confusion. I know taxes would be due now on the converted $, but what about the future withdraws since the Roth is so old?
Permalink Submitted by Alan - IRA critic on Tue, 2020-07-14 03:03
SInce you are over 59.5 and first contributed to a Roth IRA over 5 years ago, your Roth is qualified. All future distributions will be tax free. You could convert and withdraw the conversion amount anytime without tax or penalty. The conversion holding periods with respect to the 10% penalty all stop at 59.5 even if your Roth IRA has not been held 5 years.