Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59½ are subject to an early withdrawal penalty. ...
I’m reading this late but how are you avoiding early withdrawal penalties on your 401k? Is this a side benefit of Moving to an IRA?n Reply Go Curry Crackeron September 29, 2015 at 5:58 pm Yeah, moving funds from a Traditional to a Roth IRA isn’t considered a withdrawal. No early...
The IRS calculates RMDs by taking the balances of your tax-deferred retirement accounts at the end of the prior year and dividing the total by a number based on your life expectancy factor (see "A step-by-step guide to calculating your RMD"). The denominator gets smaller as your age i...
Knowing that you have to factor in certain minimum withdrawal amounts each year can help you adjust your financial plan to address any tax implications. And because the RMD rules for beneficiaries are different, knowing the rules can help you create a stronger estate plan as well. References IR...