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)

RELATED FAQS
  1. Earnings within a Roth IRA are tax free, so are these earnings included in the modified ...

    There are two possible answers to this question, depending on whether or not the distribution from the Roth IRA is qualified.Earnings ... Read Answer >>
  2. What is the five-year waiting rule for Roth IRAs?

    There are two five-year waiting periods that apply to Roth IRAs. However, in both cases, the waiting period for a Roth IRA ... Read Answer >>
  3. I am over 60 years old and have a Roth IRA to which I have made contributions for ...

    Because you meet the five-year requirement (i.e. it has been five years since you first established and funded a Roth IRA) ... Read Answer >>
  4. What are the advantages of a Roth IRA?

    Contribute to your Roth IRA and gain the advantage of it free of taxes and penalties. Make approved early withdrawals to ... Read Answer >>
  5. What are some examples of the most common assets on a Roth IRA?

    Investing in a Roth IRA can be achieved by using a variety of assets. Cash, real estate, stocks, bonds and other investments ... Read Answer >>
  6. What is the Roth IRA 5 year rule?

    Learn more about the Roth IRA five-year rule and the requirements that allow for tax-free withdrawals before five years have ... Read Answer >>
Related Articles
  1. Retirement

    How a Roth IRA Works After Retirement

    What retirees need to know about taxes, distributions and passing on your unspent savings to the next generation.
  2. Options & Futures

    Roth IRAs: Distributions

    The tax treatment of a Roth IRA distributions depends on whether the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but nonqualified distributions ...
  3. Options & Futures

    Roth IRAs: Introduction

    The Roth IRA is a retirement saving account to which individuals can make contributions with after-tax dollars. If certain requirements are met, distributions from the Roth IRA will be tax-free. ...
  4. Retirement

    6 Reasons Not to Recharacterize Your Roth IRA

    If you're thinking of recharacterizing your Roth IRA into a traditional IRA account, here are six compelling reasons why you should reconsider.
  5. Taxes

    Roth IRA Vs. Traditional IRA

    Learn more about the differences between a Roth IRA and traditional IRA.
  6. Financial Advisors

    Why Some Advisors are Shy to Convert Roth IRAs

    Potential upcoming changes from the Obama Administration could hit rollovers from traditional to Roth IRAs, and that has advisors reluctant to convert.
  7. Retirement

    Roth IRA Contribution Limits in 2016

    Discover the benefits of Roth IRA accounts and how much you can contribute for your retirement. Learn which IRA plan is best for you.
  8. Options & Futures

    Roth IRAs: Contributions

    Funding an IRA A Roth IRA can be funded from several sources: Regular contributions Spousal IRA contributions Transfers Rollover contributions Conversions Recharacterizations Roth IRA Regular ...
  9. Professionals

    Roth IRAs

    Series 6, Roth IRAs. This section discusses Roth IRA and related tax issues.
  10. Options & Futures

    Roth IRAs: Conclusion

    Like the Traditional IRA, Roth IRAs are flexible, and they are a popular way for individuals to save for their retirement. Roth IRAs differ, however, because assets can grow on a tax-free basis. ...
RELATED TERMS
  1. Roth IRA

    An individual retirement plan that bears many similarities to ...
  2. Roth IRA Conversion

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
  3. Qualified Distribution

    Distributions made from a Roth IRA that are tax and penalty free. ...
  4. Ordering Rules

    The order in which Roth IRA assets are distributed. Assets are ...
  5. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  6. Individual Retirement Account - IRA

    An investing tool used by individuals to earn and earmark funds ...

You May Also Like

Trading Center