从税务上说,Roth IRA的账目在考虑了aggregation rule之后有且仅有四个部分(表中蓝色文字) Roth IRA fundsnoteexample 1. regular contributiondeposit each year6k cash -> Roth IRA 2. taxable conversionrollover of pre-tax moneytraditional IRA-> Roth IRA, pre-tax (deductible) part ...
For this rule, the five-year period begins the first day of the tax year in which you converted money from a traditional IRA (or did a rollover from a qualified retirement plan) to your Roth IRA. For example, if you do a conversion on May 1, 2024, the rule for that conversion actua...
Because you have met the five-year rule, you can withdraw the sum converted with no penalty or income taxes owed. It’s only if you touch the account’s investment gains that taxes and penalties come into play—though you may be able to avoid the penalty if you meet one of the allowab...
Even though I have had other Roth IRAs for over 20 years, are these new Roths (from the conversion) subject to the 5 year-rule for distributions? If so, what amounts exactly are subject to penalty or taxation? Reply Jeff Rose December 30, 2017 Hi Kenneth – They’re not, but ...
Understanding 5-Year Rule for Roth Withdrawals.The article presents questions and answers about converting a traditional individual retirement account (IRA) to a Roth IRA in the U.S.GreeneKellyEBSCO_bspWall Street Journal Eastern Edition
What is the 5-year rule? Dock Treece contributed to this article. Did you find this content helpful? YesNo Share Article: Written by: Jennifer Dublino, Senior Writer Jennifer Dublino is an experienced entrepreneur and astute marketing strategist. With over three decades of industry experience, she...
To be considered a qualified distribution, the 5-year aging requirement has to be satisfied and you must be age 59½ or older or meet one of several exemptions (disability, qualified first-time home purchase, or death among them). Please note that the 5-year aging rule for Roth 401(k...
Although that might sound aggressive and unnecessary, there are many scenarios where a Roth IRA conversion can make sense. For example, let’s say you’re not earning a lot of money in a specific year and you want to convert to a Roth IRA while paying an extremely low tax rate. You co...
Another type of "5-year rule" applies when you convert a traditional IRA to a Roth IRA. You'll need to wait five years to do with with no penalties. Each conversion has its own five-year period, but IRS rules stipulate the oldest conversions are withdrawn first. The order of withdrawals...
All of this can be confusing. To determine whether you are affected by this five-year rule, you need to consider whether the funds you now want to withdraw include converted assets, and if so what year those conversions were made. Try to keep this rule of thumb in mind: IRSordering rul...