It is my understanding that all contributions to a Roth including Roth Conversions (on which taxes were paid on the conversion amount(s)) can be withdrawn at any time without penalty.Only the earnings on the contributions are subject to the 5 year holding period and the 59 1/2 age requirement to avoid Federal and possibly State premature withdrawal penalties. Am I correct?No.Contributions can be withdrawn at any time without tax or penalty.Conversions can be withdrawn at any time without tax. If you are under 59 1/2 at the time of the withdrawal and the conversion is less than 5 years old the penalty applies.Earnings withdrawn are subject to tax if it's not a "qualified" distribution. The penalty applies if you're under 59 1/2.Note that if the penalty applies all the standard exceptions to it (education, medical, etc.) are avialable.One of the more confusing things about Roths is that there are two different 5 year tests. One is the 5 year aging required before any Roth distribution is "qualified." Once it's been 5 tax years since your first Roth contribution (including conversions), you're covered for all your Roth monies, even the contribution you made yesterday.The other is the 5 year aging required of a conversion to avoid the premature distribution penalty. Each conversion has its own 5 year period. This test becomes moot when you turn 59 1/2.See Chapter 2 of Pub 590.PhilRule Your Retirement Home Fool
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