I was still employed when I opened and started contributing to a roth IRA in 2011. When I retired in 2016 I rolled it over to similar product in Fidelity. I'm assuming this satisfies the 5-year age requirement for owning a roth ira so if I liquidate it anytime after today I will not be liable for paying tax on it. am I right in my assumption? how is the original date kept track of from one institution to another?
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Since you mentioned rolling over the account when you retired, I'm wondering if the account that you began contributing to in 2011 was actually a Roth IRA or was instead a Designated Roth Account in a 401(k) or similar plan. As long as the account you contributed to was a Roth IRA, you've met the 5-year year rule with regard to determining whether or not a distribution from a Roth IRA is a qualified distribution.
If it has been more than 5 years since the beginning of the year for which you first made a Roth IRA contribution, as long and you are age 59½ or older when you make a distribution from the IRA, your distribution is a qualified distribution, tax and penalty free. Qualified distributions are not reported on Form 8606, they only appear on Form 1040 line 15a or Form 1040A line 11a.
It's your responsibility to keep track of the year for which you first made a Roth IRA contribution. Financial institutions only track the establishment date of the particular account opened at their institution. The first Form 5498 issued by the custodian for any of the Roth IRA accounts that you ever had is your proof of the year for which you first established a Roth IRA. Since financial institutions only track the establishment date of their own accounts, if you are over age 59½ at the time of the distribution they'll use code T on the Form 1099-R for any distributions from an account that has been open with them for less than the required 5 years (and some financial institutions continue to use code T even when they know that you've met the 5-year requirement).
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