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 occursQuestion 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?
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
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...
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.
"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 totalwithdrawal.In 2015, withdrawal would be qualified if requirements for disabilityare met. Otherwise, the first $100,000 conversion may be withdrawnwithout penalty and earnings would be taxable.In 2016 and 2017, an additional $100,000 per year may be withdrawn without penalty.
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