Is there a 10% early withdraw penalty for people under age 59.5 for converting traditional IRA to Roth IRA?

I've been thinking about rollover some money from my traditional IRA to Roth. I'm under 59.5 and have read online that if the 10% early withdrawal penalty is not accessed at the time of the conversion, and if I don't withdraw the converted money from my Roth IRA account until 5 years later, then the 10% penalty won't be triggered either. Is my understanding correct?

7082

Level 15

May 29, 2025 10:32:40 AM

Correct. There is no penalty for early withdrawal on a conversion from traditional IRA to Roth IRA.

There will be a 10% penalty for early withdrawal if you withdraw the converted funds in less than 5 years, except that if you are over age 59-1/2 when you make the withdrawal, there is no penalty even if it has been less than 5 years.

Level 1

May 30, 2025 7:29:47 AM

Thank you for the confirmation!

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Is there a 10% early withdraw penalty for people under age 59.5 for converting traditional IRA to Roth IRA?