Distribution from Roth that has contributions and Roth Conversions
HI,
Question, retired individual who is over 59 1/2 has a Roth with Contributions that mere made over 5 years ago. In addition, he has done Roth conversions for the last 3 to 5 years on an annual basis. He want’s to take a partial distribution.
Is he able to take from those funds that have been in there over 5 years first OR is it considered pro-rated since you have 2 contribution types?
Thank you,
Brian
Permalink Submitted by Alan - IRA critic on Wed, 2025-08-20 20:08
Because his Roth is qualified (5 years and age 59.5), all distributions are tax and penalty free and Form 8606 is no longer needed to identify the amount of regular contributions and conversion contributions.
Even if the Roth had not been qualified, there would be no pro rating. The ordering rules would apply with regular contributions coming out first, conversions by chronological order next, and earnings last. Any earnings would have been taxable, and the distributions would have to be reported on Form 8606.