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#1
01-30-2008, 09:34 PM
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 Re: Roth IRA: When does 5 year period start? "Herb Smith" <smithff33[at]aol.com> wrote in message news:0678b16e-cef1-40cc-8cfe-371e08dd055a[at]v46g2000hsv.googlegroups.com... - quote - > On Jan 30, 9:11?am, "Howard Kaikow" <kai...[at]standards.com> wrote:
Thanx.> > I had a Roth IRA at one fund company, started in 1999. > > That account is now closed. > > If I open a Roth at another fund company, does the 5-year period still start > > from 1 Jan 1999? > As long as the original account was not closed until after January 1, > 2004 you have met one of the prime conditions for "qualified" > distributions (i.e. tax free earnings). > If the account was closed prior to Jan 1, 2004 (i.e. less than 5 tax > years), you will need to make up the missing months with the new > account. It appears that I closed the account in 2006, so I'm OK. - quote - > > If I open the new Roth by converting from a traditional IRA, does the
Thanx.5-year > > period for the conversion start with 1 Jan 1999, or does it start over? > Now you are talking about a DIFFERENT 5 year holding period, one that > applies only to conversion contributions. It also applies only while > you are not yet 59-1/2. EACH conversion starts a NEW 5-year holding > period which has nothing to do with the original account opening. Once > you turn 59-1/2 you no longer have to worry about the conversion > holding period. Alas, I am over 59.5 years of age, so this will be a non-issue. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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01-30-2008, 04:36 PM
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| Re: Roth IRA: When does 5 year period start? On Jan 30, 9:11�am, "Howard Kaikow" <kai...[at]standards.com> wrote: - quote - > I had a Roth IRA at one fund company, started in 1999.
As long as the original account was not closed until after January 1,> That account is now closed. > If I open a Roth at another fund company, does the 5-year period still start > from 1 Jan 1999? 2004 you have met one of the prime conditions for "qualified" distributions (i.e. tax free earnings). If the account was closed prior to Jan 1, 2004 (i.e. less than 5 tax years), you will need to make up the missing months with the new account. - quote - > If I open the new Roth by converting from a traditional IRA, does the 5-year
Now you are talking about a DIFFERENT 5 year holding period, one that> period for the conversion start with 1 Jan 1999, or does it start over? applies only to conversion contributions. It also applies only while you are not yet 59-1/2. EACH conversion starts a NEW 5-year holding period which has nothing to do with the original account opening. Once you turn 59-1/2 you no longer have to worry about the conversion holding period. - quote - > << ------------------------------------------------------- > > << The foregoing was not intended or written to be used, � > > << nor can it used, for the purpose of avoiding penalties �> > << that may be imposed upon the taxpayer. � � � � � � � � �> > << � � � � � � � � � � � � � � � � � � � � � � � � � � � � > > << � The Charter and the Guidelines for submitting posts � > > << �to this newsgroup as well as our anti-spamming policy �> > << � � � � � � � � �are atwww.asktax.org. � � � � � � � � > > << � � � � Copyright (2007) - All rights reserved. � � � � > > << ------------------------------------------------------- >
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
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#-1
01-30-2008, 04:11 PM
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| Roth IRA: When does 5 year period start? I had a Roth IRA at one fund company, started in 1999. That account is now closed. If I open a Roth at another fund company, does the 5-year period still start from 1 Jan 1999? If I open the new Roth by converting from a traditional IRA, does the 5-year period for the conversion start with 1 Jan 1999, or does it start over? -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| ira, period, roth, start, year |
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