Roth Withdrawal Basics Flashcards
1
Q
What is the waiting period to withdraw principal from a Roth IRA without penalty in the following two situations:
Roth principal from a Roth contribution
Roth principal from a Roth conversion
A
Principal from a Roth Contribution - Can be withdrawn any time without penalty (or taxes obviously)
Principal from a Roth Conversion - Five years from January 1 of the year in which the conversion occurred. For instance, if you convert on August 5 of 2010, then you can withdraw principal without penalty on January 1, 2015.
