Permalink Submitted by Alan - IRA critic on Tue, 2021-05-18 23:03
There are 2 Roth IRA holding periods. Conversion holding periods all end at 59.5 if not sooner, but the 5 year holding period for earnings to be qualified and tax free still applies along with being 59.5. Any Conversion can be distributed without tax or penalty after 59.5, but any gains from the conversion are not tax free unless 5 years has passed from the year of the first Roth contribution and taxpayer is also 59.5.
Permalink Submitted by Alan - IRA critic on Tue, 2021-05-18 23:03
There are 2 Roth IRA holding periods. Conversion holding periods all end at 59.5 if not sooner, but the 5 year holding period for earnings to be qualified and tax free still applies along with being 59.5. Any Conversion can be distributed without tax or penalty after 59.5, but any gains from the conversion are not tax free unless 5 years has passed from the year of the first Roth contribution and taxpayer is also 59.5.