Fed income tax on Roth per 5 year rule

[willie49]

I have a Roth IRA I opened in 2006 and have converted some stock from trad ira. Do I have to hold the stock for 5 years or just the $ amount at time of conversion or neither?  I am 73 yrs old. 

[DanaB27]

Neither, your distributions will be Qualified Distributions.

"A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.

1. It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit.
2. The payment or distribution is:
   1. Made on or after the date you reach age 59½,
   2. Made because you are disabled (defined earlier),
   3. Made to a beneficiary or to your estate after your death, or
   4. One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit)." (Pub 590-B)

Please see Distributions of conversion and certain rollover contributions within 5-year period for additional information, but be aware this applies only to distributions that aren't a Qualified Distribution.
 

[willie49]

DanaB27,

Thank you much for your reply. Just to be clear, because I am >59 1/2 (actually 73) I can roll $ from Trad IRA into Roth, pay the tax due, and withdraw $ immediately, correct?

Bill

[BrittanyS]

That is correct.  Once you are over the age of 59 1/2 you can withdrawal from a traditional IRA penalty free.  You will just paid tax on the distributions.  For more information, see the link below:

IRA withdrawals

@willie49