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rkmacdonald

Question: Can the entire amount in the IRA be distributed tax-free after 8/2006, even though all of the contributions, except the initial one, were made less than 5 tax years ago?

My understanding of the Code is that the seasoning only applies to the first contribution. That's what sets the 5 year clock ticking. Therefore, in your scenario, since the first contribution into this account was more than 5 years ago and the account holder has turned 59 1/2 then yes the entire amount can be withdrawn tax free.

Check Publication 590 before engaging in any action based on my opinions.

PosFCF
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