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BBJB
Returning Member

Roth conversion to an existing Roth

I am 75 years old. I’ve had a Roth for many years with a present value of over 150,000 consisting of dividend paying ETFs,  I have an IRA with Stock ETFs valued at about 20,000. I want to do a Roth conversion from my IRA to my Roth of about 10,000 dollars in dividend paying ETF shares.   I know I will get a 10-99 for my conversion for which I will add to taxable income.  Shortly after the conversion, I intend to withdraw 1,000 dollars of total dividends per month from my Roth.  Other than the 10-99 tax for the conversion are my Roth distributions tax free? Or does the 5 year rule somehow complicate my analysis? 

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Roth conversion to an existing Roth

Your converted Roth will be separate from your existing Roth and is subject to the 5 year holding period. While withdrawing the principal is tax free since you already paid taxes on it, any earnings will be taxed. 

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