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As I understand it, I can withdraw my converted contributions from my ROTH account without 10% penalty, as long as a 5 yr holding period is met.

Does the 5 yr clock start running on the entire account with the first conversion, or does each conversion have it's own 5 yr clock running?


There is one all-purpose Roth 5-year aging period which begins January 1 of the earliest year in which you make a Roth contribution, either by cash or conversion. This is the 5-year part of the test for "qualified" Roth distributions, and once it's satisfied it's satisfied for all your Roth accounts.

There is a separate 5-year test when conversions are involved and you are under 59 1/2. In such cases each conversion has its own 5-year clock.

For example: I convert $2000 in year 2000 (at age 40), and then convert $10000 in year 2005 (at age 45).

If I withdraw $2000 in 2008 (at age 48), there will be no tax and no penalty. Correct?


What if I withdraw $3000 in 2008? 10% Penalty on the $1000 which hasn't been in the account 5 years?

Yes. All this assumes there have been no other Roth contributions.

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