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)

Hot Definitions
  1. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  6. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
Trading Center