UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: crskinner45 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Roth rollovers post retirement Date: 4/23/2012 1:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Hi,

I'm currently retired and have rolled to my Roth from my IRAs in 2010, 2011, and 2012. Each year was approximately $100K for which I paid income taxes on the rollovers each year (ordinary income). The account is now worth more than the $300k which was rolled into it.

Question 1: Since the rollovers were in stocks (in kind), not cash, how do I determine how much I can take out in 2015, 2016 and 2017? Someone has advised me I can take out the $100K plus growth. If this is true, then a second question occurs

Question 2: Since I try to be a good steward of my accounts, I do various things to keep it growing (selling non performing stocks, buying new stocks, re-balancing, etc.). So the only thing I will know in 5 years is how much I put in 5 years previous, since the stocks probably won't be the same.

How do I determine how much I can take out? Do I use some sort of averaging growth technique? Or can I simply say that 1/3 of the input to this account was made in 2010 and I can therefore take out 1/3 in 2015?

Question 3: I hope I'm a good investor, but what about the negative case? What if in 2015 the account value is less than the input from rollover?
Print the post Back To Top
Author: DoLoop Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70579 of 76418
Subject: Re: Roth rollovers post retirement Date: 4/23/2012 1:51 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I don't consider myself to be an expert on this but, assuming you're older than 59 1/2, I think you can take out what ever amounts you want to beginning in 2015.

Here's a link that explains it: www.fairmark.com/rothira/roth101.htm

Print the post Back To Top
Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70580 of 76418
Subject: Re: Roth rollovers post retirement Date: 4/23/2012 2:44 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
i'm no expert but --

• think it's right that after 59.5 years, you can take everything from Roth

• think that if you're not yet 59.5 AND the Roth didn't exist before 2010, you can withdraw everything in 2015 (penalties if 'sooner')





the experts on this stuff reside at the Tax Board --
http://boards.fool.com/tax-strategies-100155.aspx?mid=299923...

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70581 of 76418
Subject: Re: Roth rollovers post retirement Date: 4/23/2012 3:21 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
IRS Publication 590, p 66 and 67 has a worksheet that deals with this situation.

The 5 yr rule--that you can take qualified distributions after 5 yr from opening the account and after age 59-1/2 applies to contributions and distributions. On conversions, there is a 5 yr rule for each conversion.

The worksheets walks you through the complexities.

IRS Publication 590 is available on the irs.gov website.

Print the post Back To Top
Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70582 of 76418
Subject: Re: Roth rollovers post retirement Date: 4/23/2012 5:11 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
"i'm no expert but --

• think it's right that after 59.5 years, you can take everything from Roth"

Only after 2014 is over. Before then he can only withdraw the first
$300,000. Rest would be taxable income at ordinary rate.

"• think that if you're not yet 59.5 AND the Roth didn't exist before 2010, you can withdraw everything in 2015 (penalties if 'sooner')"

Before 2015 this is still not a qualified distribution. Excess over
$300,000 conversion amount still taxable. Penalties may apply to total
withdrawal.

In 2015, withdrawal would be qualified if requirements for disability
are met. Otherwise, the first $100,000 conversion may be withdrawn
without penalty and earnings would be taxable.

In 2016 and 2017, an additional $100,000 per year may be withdrawn
without penalty.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement