Roth conversions after 59.5
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.
