Converting Client Lump Sum Pension into a Roth
Hello. Client is 64 years old. He has had a Roth IRA established since 2005. He has a pension that he can take a lump sum and roll it over. If he rolls the pension into an Traditional IRA and then converts into his existing Roth IRA, does he have to wait 5 years to take distributions penalty free? Thanks, Julie
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-14 15:31
He no longer has any 5 year waiting periods, as the Roth IRA is qualified. He could convert and remove the entire conversion, in fact the entire Roth balance the next day tax and penalty free.