I am over 60 years old and have a Roth IRA to which I have made contributions for more than five years. Are all distributions tax free?

By Denise Appleby AAA
A:

Because you meet the five-year requirement (i.e. it has been five years since you first established and funded a Roth IRA) and you are at least age 59.5, all distributions from your Roth IRA(s) will be tax and penalty free.



The Roth IRA rules do not require any waiting period for investments; however, they do require a waiting period for Roth conversions if the Roth IRA owner does not meet one of the exceptions to the 10% penalty. Reaching age 59.5 is one of these exceptions, so you are no longer subject to any waiting period.



This question was answered by Denise Appleby
(
Contact Denise)



RELATED FAQS

  1. How do deferred tax assets help in meeting retirement goals?

    Learn how tax deferred assets can help individuals achieve long-term financial goals such as retirement and how they differ ...
  2. What are the best ways to pay less income tax?

    Learn about reducing your income tax burden by contributing to an employer-sponsored retirement plan or IRA, and see what ...
  3. What are the most common deferred tax assets used by individuals?

    Use these deferred tax assets to reduce your tax liability and grow your assets simultaneously. Discover the most common ...
  4. Should I use a deferred tax asset for all of my retirement funds?

    Look outside tax-deferred accounts for retirement savings that are worthwhile now and later. Invest a portion in after-tax ...
RELATED TERMS
  1. Age Discrimination In Employment Act Of 1967

    A federal statute protecting "certain applicants and employees" ...
  2. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  3. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  4. Gold IRA

    Definition of Gold IRA
  5. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  6. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...

You May Also Like

Related Articles
  1. Professionals

    Why Retirement Advice Is Better But ...

  2. Professionals

    Coming Soon: Private Equity In 401(k) ...

  3. Professionals

    Ways To Cut 401(k) Expenses

  4. Professionals

    Tread Carefully With Retirement Plan ...

  5. Professionals

    Required Minimum Distributions: A Reminder

Trading Center