Roth conversion under age 59 1/2
Am I correct to assume that there is no 10% penalty for a Roth conversion for a client under age 59 1/2 as long as taxes are NOT deducted from the traditional IRA at the time of conversion and that client should pay taxes with after-tax non-IRA funds?
Permalink Submitted by Alan - IRA critic on Wed, 2021-12-15 20:36
Correct. There is never a penalty for converted distributions, but there is for any withholding that does not get converted.
Permalink Submitted by Diane Ouellette on Wed, 2021-12-15 22:02
Thank you!