After tax money into Roth
Client rolled after tax money into a Roth 4 years ago. After tax funds held for 10 years. Does he qualify for a tax-free Roth withdrawal? Thank you.
Client rolled after tax money into a Roth 4 years ago. After tax funds held for 10 years. Does he qualify for a tax-free Roth withdrawal? Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2021-05-06 16:30
Until the Roth is qualified all distributions follow the ordering rules. If this client’s Roth only holds this rollover which was non taxable, it can be withdrawn without tax or penalty any time, but the earnings on this rollover will not be tax free until the Roth is qualified (5 years and age 59.5).