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. What effect will a prenuptial agreement have on a 401(k)?

    Courts have ruled that a prenuptial agreement for qualified plan (including 401(k)) assets is invalid. The logic is that ...
  2. Is there a limit on how much I can move from my IRA to my Roth IRA?

    There is no limit on the amount that can be converted from your Traditional IRA to your Roth IRA. As you may already know, ...
  3. I have a small business, and I'm considering setting up an SEP IRA. What are leased ...

    Generally, a leased employee is the employee of an outside organization from which you lease the employee's services. For ...
  4. If I participate in my company’s SIMPLE IRA plan, can I also contribute to ...

    Because the SIMPLE IRA contribution limits are much lower than the 401(k) limits, it might at first seem unfair that you ...
RELATED TERMS
  1. Gold IRA

    Definition of Gold IRA
  2. Eligible Transfer

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

    The use – by a business owner or professional practitioner – ...
  4. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...
  5. MyRA

    A new tax-advantaged retirement account that President Barack ...
  6. Provident Fund

    A compulsory, government-managed retirement savings scheme used ...
comments powered by Disqus
Related Articles
  1. Should You Convert Your IRA?
    Retirement

    Should You Convert Your IRA?

  2. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  3. New Retirement Plan Limits For 2011
    Taxes

    New Retirement Plan Limits For 2011

  4. How Much Social Security Will You Get?
    Retirement

    How Much Social Security Will You Get?

  5. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

Trading Center