Roth Conversions and their 5 year clock

Estimated reading time: < 1 minute(Last Updated On: August 12, 2019)

You asked:   “I converted $18,000 in a traditional IRA to a Roth IRA in 1998. I also made $20,000 in contributions over the years 1998-2010. Last year I took a distribution of $38,000. I am under age 59 1/2.Do I have any taxes or penalty on this withdraw?”   My answer:   No, as you describe the situation. Regular contributions come out first, followed by Roth conversions, and finally profits. The rules for calculating any taxable amounts from a … Continue reading

The post Roth Conversions and their 5 year clock appeared first on The IRA Web Advisor.

Source: IRA Web Advisor

Leave a Reply

Your email address will not be published. Required fields are marked *