@DFMu wrote:
Thanks for your answer, but I'm still confused. I am 67. I opened Roth IRA account in 2021 when I converted a portion of a traditional IRA. Am I unable to withdraw any of converted amount until 2026 without tax or penalty? I thought the rule was to keep under 59.5 year olds from converting and withdrawing without penalty.
What is your exact situation? You are adding on to an old discussion.
Whenever you withdraw from a Roth IRA, you withdraw contributions first, conversions second, and earnings last.
For withdrawal of contributions: Never taxed.
For withdrawal of conversion amounts: Subject to a 10% penalty for early withdrawal unless the conversion was more than 5 years ago OR the taxpayer is over age 59-1/2.
For withdrawal of earnings: Taxable income plus a 10% penalty if the account holder is under age 59-1/2. Also taxable income if the account holder's first Roth IRA was opened less than 5 years prior, even if they are over age 59-1/2, but not subject to the additional penalty.
You can withdraw the conversion amount without penalty or tax at any time, but if you withdraw the earnings (increase in value) before 2026, you will pay regular income tax.
