No. of Recommendations: 3
1) At the age of 60 you convert a traditional IRA to a new Roth. Three years later if you withdraw any money you get hit with a 10% penalty but no taxes.

No.

You're over 59.5, so there will not be a penalty. You can withdraw the converted amount without tax (that was paid at conversion). The earnings will be taxable because the Roth has not been open for 5 years.

2) At the age 60 you convert a traditional IRA into an existing Roth that have been open for ten years but only has a small amount in it. Three years later you withdraw more than the original contributions made ten years ago. You pay no taxes or penalty.

Correct.

You're over 59.5, so there's no penalty. The Roth has been open for at least 5 years and you're over 59.5, so withdrawal of earnings is tax free.

--Peter
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