ROTH Conversion from Rollover

Submitted by Ken Johnson on Mon, 2024-11-11 16:26

Greetings,

I am new here. I was hoping for a little discussion

of some of the subtleties of ROTH and Rollover IRAs?

First off, just wanted to confirm I’m in the right place

and logged in properly to post?

Thanks,

Kenny



Submitted by Ken Johnson on Mon, 2024-11-11 17:24

Ah … thank you so much.

1st thing on my mind-

I’m 71, and had a ROTH and a Rollover for about 15 yrs.

I’ve never made any conversions (even though I should have).

I haven’t made any contributions either for 7 or 8 years.

I completely understand that any conversion now will incur my current

marginal tax rate, of 22%.

My question is – will any conversion that I make now after all these years

into my ROTH from my Rollover need to sit and “age” for 5 years before I’m

subject to any kind of penalty?

Thank you kindly,

Ken

allowed a distribution without a 10% penalty?

Submitted by Ken Johnson on Mon, 2024-11-11 20:00

Well gosh! That’s fairly uplifting information. So if my accounts are “qualified”, will

there be any scrutiny of the proportions of each source – contributions, conversions, and

then gains? My records like 8086 & 5498 for each year since opening are completely gone

in a disaster. No good way to prove any of this. Maybe it doesn’t need to be proved.

Just takin a stab in the dark. Hoping for the best.   😉

Appreciate the thoughts,

Thank you,

Kenny

Submitted by Ken Johnson on Mon, 2024-11-11 21:37

Well gosh! That’s fairly uplifting information. So if my accounts are “qualified”, will

there be any scrutiny of the proportions of each source – contributions, conversions, and

then gains? My records like 8086 & 5498 for each year since opening are completely gone

in a disaster. No good way to prove any of this. Maybe it doesn’t need to be proved.

Just takin a stab in the dark. Hoping for the best.   😉

Appreciate the thoughts,

Thank you,

Kenny

Submitted by Ken Johnson on Tue, 2024-11-12 08:53

Well this sounds good.  If its distributions are perpetually qualified, even if mostly made up of only recently converted funds (less than 5yr),  that makes this ROTH IRA quite valuable.

Don’t want to, but  being able to tap it (penalty free)  in less than 5 sounds good. This Rollover is 80% larger than the ROTH. Small conversions of, say 25%  of it per year won’t put me into a

higher bracket. Sure wasn’t looking forward to having to keep up with  the various aging periods for all these activities. Now if I could just figure how to avoid paying the 22% … that

would be a magic trick to brag about.  😉

and yes, excuse the typo … 8606, and not 8086

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