- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.