When you turned 59 1/2 it meant that withdrawals from 401(k)s and IRAs do not incur a 10% penalty for early withdrawal. It has no effect on the taxation of the withdrawal. Taking a distribution from your old 401(k) was a taxable event, unless you rolled the funds into a Traditional IRA within 60 days. If you put the funds in a Roth IRA, the distribution is taxable as ordinary income. But it is not subject to the 10% penalty you would have incurred had it happened before you turned 59 1/2.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
