roth IRA distributions

Forum|Forum|6 years ago
February 16, 2020
2 replies
16 views

I am 68 I have had a roth IRA greater than 5 years. I have also made conversions (on which I paid tax) to the roth IRA from my traditional IRA within the last 5 years. In 2019 I withdrew a substantial amount of the roth.

Do I owe taxes on the earnings from the contributions made to the Roth within the last 5 years, or is the total withdrawal non taxable?

macuser_22

Alumni - Champ

Being over age 59 1/2 is an exception to any early distribution penalty.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

AnnetteB6

Level 15

The total withdrawal should be non-taxable if it is a qualified distribution.

From IRS Publication 590-B:

What Are Qualified Distributions?

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

It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and
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).