Great answers. I never know there are many 5 years clocks running. Now I know. Thanks.
And please correct me if I don't understand you right. My Roth account was opened since 2005. As I retired in 2015, after that, every year I did Roth conversion. Say, I died in 2022 and the last Roth conversion I did was in 2022. My beneficiaries must pay income tax for withdrawing the earning of the Roth Conversion portion which occurs between 2018 and 2022 and pay no 10% penalty.
And I am curious to know if my Roth IRA is clearly marked by say Fidelity "regular" vs "conversion" contribution and what year I did regular contribution or conversion and how much contribution for each. Really? If so, I am impressed by it.
And it is very good to know that beneficiaries can withdraw regular contribution and conversion contribution with no penalty and no income tax.
However, per my instruction to my beneficiaries, if they follow (ha), they won't withdraw any Roth inherited IRA till the year of 2032 for this case, then everything is tax free (i.e. no penalty no income tax). All the earnings will way pass 5 years mark as I see it. Did I miss something? I know I am not a smart bulb. Hehe..
What about my other questions from my previous email?
And I wish you a good weekend.
Thanks,
Maureen
