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Posted by Phil Marti on May 1, 2007, 7:12 pm
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> I opened a Roth IRA in '98 with a normal contribution.
> Since then, I have made several additional yearly
> contributions, as well as several Conversions (regular IRA
> to Roth IRA). All the conversions were done less than 5
> years ago.
>
> I'm now over 59 1/2. My understanding is that:
>
> - I can withdraw my contributions (no penalty, no tax) --
> at any time.
> - I can then withdraw all my conversions (no penalty, no tax)
> because I'm over 59 1/2.
>
> My main question concerns the Earnings.
Since your Roth is more than 5 years old and you're over 59
1/2, ALL distributions from here out are "qualified,"
meaning there is no tax or penalty. The ordering rules in
IRS Publication 590 are for nonqualified distributions, and
the 5 year aging of individual conversions is relevant only
to the premature distribution penalty.
--
Phil Marti
Clarksburg, MD
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