UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: Re: Roth IRA Qs Date: 2/25/2000 8:19 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Matthew writes:

<<Hi Pixy - have a question for you. In the case of a Roth R/O IRA set up in 1998; I've made two of the four yearly tax payments and will be paying the third in April. It was a R/O from a conventional pension fund R/O IRA. I am over 71 yrs. young; can I withdraw any of the transferred assets from the Roth without penalty, before the 5 yr. holding period is up?>>

Yes, you can; however, in doing so you will speed up the reporting of income from the conversion. Say you converted $1,000 in 1998 to be spread over 1998, 1999, 2000, and 2001 at $250 per year. You reported that $250 for each of the years 1998 and 1999. This year you want to take $100. When you take it, you must report the original $250 conversion income for 2000 plus $100 from that still due in 2001, or a total of $350. In 2001, then, you would just report the remaining $150 of conversion income. Note that you will not be penalized, but you will be taxed sooner on the distribution.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Apple

Apple and Ninety Years Ago
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement