Thank you. According to the parts of the instructions for Form 8606 that I've highlighted in red, it appears that the number on line 19 of the form would be 0 and I would not continue filling out the form as none of my Roth IRA distributions would be taxable since I opened the Roth in 1999. I understand that Roth employer plans like my TSP and my husband's 401K have separate start dates, so if I opened a Roth TSP by doing a conversion this year, I would not be able to draw from it tax-free until 2031? The question is, what portion of that Roth TSP withdrawal would be taxable in 2030? I will have paid tax on the conversion amounts already, so is it just the earnings that would be taxable if I made a withdrawal in the first 5 years? Are conversion amounts considered to be withdrawn first, or are conversions and earnings withdrawn on a pro-rata basis so if conversion amounts that have already been taxed aren't taxed again, a small percentage of the distribution due to the earnings will be taxed the year of distribution?
I could avoid this entirely I suppose by continuing to do a direct rollover from my TSP to a traditional IRA, then convert that to a Roth since it appears the Rollover Roth would inherit the opening date of my first Roth, but unless my husband rolls his Roth 401K to a Roth IRA upon retirement, he would have to wait 5 years from 2025 (when he opened his Roth 401K with an in-plan conversion) to withdraw from that tax-free.
