Sunday, February 24, 2013

Roth Conversions and the 5 Year Rule

If you convert your regular IRA into a Roth IRA, you can't take a distribution from the Roth for five years without a 10% penalty unless you meet some specific exceptions. After five years, you can withdraw the conversion amount, but not any earnings penalty free even if you are under age 59 1/2. Each conversion amount is subject to its own five year period.

No comments:

Post a Comment