Ask Terry Questions Roth conversions after 59.5

Roth conversions after 59.5

By Terry Savage on March 12, 2023 | Financial Planning / Retirement

I am 62 years old and opened a Roth IRA in the late 1990’s. I would like to make some additional ROTH conversions prior to claiming social security and taking RMDS to avoid being in a higher tax bracket. My question is whether the 5 year rule applies to withdrawals after age 59.5. I have seen conflicting information on the 5 year rule for conversions after 59.5.

Thank you

Terry Says

You’ve obviously had the IRA for longer than 5 years. So now you avoid the 5-year penalty for withdrawals since you’re over 59-1/2

But if you want to CONVERT a traditional IRA to a Roth — and pay the taxes with money held outside the account– why not set up a new Roth IRA at Fidelity or Vanguard. That way you can keep them separate when it comes to withdrawals down the road.

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