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Retirement tax questions
Per the chart:
#1 is never taxed.
#2 is not subject to income tax, because you will have paid income tax on the converted amount at the time of the conversion. #2 is subject to a 10% early withdrawal penalty if less than 5 years (5 year clock per conversion). But, because the 10% early withdrawal penalty is never assessed over age 59-1/2, #2 is tax-free in your situation.
#3 is not taxed as long as
a) it is at least 5 years since you opened your first Roth IRA, and
b) you are over age 59-1/2.
‎June 26, 2024
4:39 PM