No. of Recommendations: 1
aj485,

You wrote, ... Roth conversions can be withdrawn after they have been in the account for 5 years without paying taxes or penalties. ...

Nit #1: You don't pay additional taxes on conversions, but you may owe the 10% penalty.

Nit #2: Any non-taxable portion of a Roth IRA conversion can be withdrawn penalty free ... but any taxable portion that was also converted in that year has to be withdrawn first. Also since you have to withdraw conversions in order of the contribution year, if you have an earlier taxable conversion already in your Roth IRA you will have to wait for that 5 year clock or pay the penalty.

- Joel
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.