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.


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.


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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.