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Posted by Howard Kaikow on January 30, 2008, 5:34 pm
Please log in for more thread options > > I had a Roth IRA at one fund company, started in 1999.
> > That account is now closed.
> > If I open a Roth at another fund company, does the 5-year period still
start
> > from 1 Jan 1999?
>
> As long as the original account was not closed until after January 1,
> 2004 you have met one of the prime conditions for "qualified"
> distributions (i.e. tax free earnings).
> If the account was closed prior to Jan 1, 2004 (i.e. less than 5 tax
> years), you will need to make up the missing months with the new
> account.
Thanx.
It appears that I closed the account in 2006, so I'm OK.
> > If I open the new Roth by converting from a traditional IRA, does the
5-year
> > period for the conversion start with 1 Jan 1999, or does it start over?
>
> Now you are talking about a DIFFERENT 5 year holding period, one that
> applies only to conversion contributions. It also applies only while
> you are not yet 59-1/2. EACH conversion starts a NEW 5-year holding
> period which has nothing to do with the original account opening. Once
> you turn 59-1/2 you no longer have to worry about the conversion
> holding period.
Thanx.
Alas, I am over 59.5 years of age, so this will be a non-issue.
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