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. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  2. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  3. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  4. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
  5. Conflict Theory

    A theory propounded by Karl Marx that claims society is in a state of perpetual conflict due to competition for limited resources. ...
  6. Inflation-Linked Savings Bonds (I Bonds)

    U.S. government-issued debt securities similar to regular savings bonds, except they offer an investor inflationary protection, ...
Trading Center