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Old 08-26-2015, 05:26 PM
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Roth early withdrawal 5 year rule

In March 2011 I converted a traditional IRA to a Roth. It is currently worth less than the amount converted. I am planning to take the money out in February 2016 and close the account. Am I correct that there will be no penalty even though I am not 59 1/2 yet?



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Old 08-27-2015, 12:55 PM
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Originally Posted by freehuman View Post
In March 2011 I converted a traditional IRA to a Roth. It is currently worth less than the amount converted. I am planning to take the money out in February 2016 and close the account. Am I correct that there will be no penalty even though I am not 59 1/2 yet?
No, incorrect; In order to withdraw your earnings from the R- IRA tax and penalty free, not only must you be over 59 ½ years-old but your initial contributions must also have been made to your R- IRA five years before the date when you start withdrawing funds



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