Question:
Hello,
I’m in my sixties, in the golden years for Roth conversions, which I’ve been doing. I’ve had a small Roth IRA account for more than 5 years. Last year I converted $90,000. This year will be about the same.
My question regards withdrawals. If I withdraw from my Roth IRA, am I exempt from the 10% early distribution penalty because I’m over age 59 1/2?
Thank you!
Answer:
The rules for the taxation of Roth IRA distributions can be confusing. Fortunately, this particular rule is easy. When you are over age 59 ½, you will never be subject to a 10% penalty on any withdrawal of converted amounts from your Roth IRA.
Question:
Hello Ed,
If I take more than my required minimum distribution (RMD) this year, will the IRS allow that as credit applied to following year’s RMD?
Looking forward to your answer!
Thank you,
Mark
Answer:
Hi Mark,
You can always take more than your RMD from your IRA in any given year. Unfortunately, this extra amount cannot be used as credit toward an RMD in a future year. Regardless of how much you take from your IRA this year, you will still need to satisfy the full RMD amount next year.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
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