DEFINITION of 'Ordering Rules'
The order in which Roth IRA assets are distributed. Assets are distributed from a Roth IRA in the following order:
1. IRA participant contributions
2. Taxable conversions
3. Non-taxable conversions
INVESTOPEDIA EXPLAINS 'Ordering Rules'
This set of rules is used to determine the applicable tax treatment of a nonqualified Roth IRA distribution.
Under the aggregation and ordering rules, all of an individual's Roth IRAs are treated as a single account.
1) A distribution from a Roth IRA that occurs before the Roth ...
The treatment of a contribution as being made to another type ...
A method used by individuals to minimize the tax burden of converting ...
The amount that Traditional, SEP and SIMPLE IRA owners and qualified ...
1. A tangible or intangible barrier or occurrence that, once ...
An individual retirement plan that bears many similarities to ...