(Boy, I had a hard time getting back into here! All kinds of problems trying to log-in...Not sure how I finally made it, but anyway, here I am)...
Thanks, Opus 17...
This is a wealth of info, and I appreciate it. I'm mainly focused right now on just this part of your reply:
The bottom line is that
- there is an extra tax on early withdrawals of conversions,
- each conversion has a separate 5 year clock,
- the 10% tax for early conversions does not apply if you are over age 59-1/2,
- the general 5 year rule for qualified distributions applies at any age.
Number 3 is what I'm interested in. And I think you meant to say"the 10% penalty for early distributions..." rather than 10% tax for early conversions"... did you not?
(As I am converting from a traditional IRA to a Roth, I pay the tax when it leaves the traditional IRA. Once in the Roth, there should be no more tax, ever. It's a 10% penalty on breaking this 5 year rule, that I'm concerned with).
Am I interpreting correctly that, since I made my first Roth conversion at age 75 (well past 59 1/2), that I can take any (or all) of the money out of that Roth at any time (even the very next day after I did the conversion, if I wanted to), with no penalty?
