Retirement tax questions


@macuser_22 wrote:

If the 5 year rule is not met then distributions of "earnings" can be taxable but is not subject to the 10% early distribution penalty when  over 59 1/2.     None of that applies to rollovers which is what the poster was asking about.

 

It also says:

 

Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that aren't qualified distributions.

Exceptions.

You may not have to pay the 10% additional tax in the following situations.

  • You have reached age 59½.

 

 

 


I will also note that the 5 year rule for *conversions* is different than the 5 year rule for *contributions*.    The 5 year rule for contributions applies at any age, however, the contribution is for ANY Roth IRA and the 5 year clock starts when the very first Roth contribution was made.   Since the poster said that a Roth IRA has existed for 10 years then the 5 year rule has been met.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**