ROTH Conversion – 5 Year Rule
Thank – you for the opportunity to submit my question.
Established ROTH in 1998, age 69. First partial ROTH conversion in 2019 and second partial ROTH conversion in 2020. Both conversions from T-IRA of dividend stocks.
Questions:
Can I withdraw dividends from stocks converted in 2019? Does 5 year rule apply to 2019 conversion?
Purpose of withdrawals is to pay extra principle on mortgage. I have part-time work and contribute to ROTH.
Permalink Submitted by Alan - IRA critic on Fri, 2020-11-13 20:45
Since your Roth is long since qualified (since 2003) and is entirely tax free, you can withdraw any amount you wish free of tax. That includes conversions you have just done. You are no longer subject to any 5 year rules. If you do more conversions after 2020, be sure you complete your TIRA RMD before converting additional amounts. Not a problem in 2020, since 2020 RMDs have been waived.