I retired and transferred part of my pension distribution to a Roth IRA. If I am over 55, do I still qualify for the age 55 exemption?

By Denise Appleby AAA
A:

The age 55 exception applies only to distributions from qualified plans and 403(b) accounts. Once the assets have been credited to an IRA, that benefit no longer applies to those assets.

You mentioned that you put part of your pension distribution in a Roth. Does this mean that you rolled over the amount to a Traditional IRA first and then converted it to a Roth IRA? I ask because assets cannot be moved directly from a pension plan to a Roth IRA. Instead, they must first be contributed to a Traditional IRA and then converted to a Roth. If the assets were not rolled to the Traditional IRA first, then the deposit to the Roth IRA may be ineligible.

For more information, read Tax Treatment Of Roth IRA Distributions.

This question was answered by Denise Appleby
(Contact Denise)

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