does this distribution have a penalty
Our client opened a roth ira for the first time when he was 63 and did a roth conversion that year.
He is now 66 and wants to take money out of the roth ira.
Will he owe money for a penalty from withdrawing from a taxable conversion prior to the completion of the 5 year clock on the conversion?
Permalink Submitted by Alan - IRA critic on Wed, 2023-06-07 18:51
No penalty because he has reached 59.5. However, if he withdraws any earnings on the 2020 conversion prior to 2025 he will owe tax (but no penalty) on the earnings.