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Co-mingled Roth - distribution of earnings?

I opened a Roth IRA in '98 with a normal contribution. Since then, I have made several additional yearly contributions, as well as several Conversions (regular IRA to Roth IRA). All the conversions were done less than 5 years ago. I'm now over 59 1/2. My understanding is that:

- I can withdraw my contributions (no penalty, no tax) -- at any time.

- I can then withdraw all my conversions (no penalty, no tax) because I'm over 59 1/2.

My main question concerns the Earnings. Since my Roth is co-mingled, I don't know which earnings came from the Contributions and which came from the Conversions. If I withdraw all my Earnings, would it be penalty-free and tax-free because I'm over 59 1/2 and my _original_ Roth was opened more than 5 years ago? Or would there be some taxes because my Conversions were done less than 5 years ago?

- Tom

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tom
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Since your Roth is more than 5 years old and you're over 59

1/2, ALL distributions from here out are "qualified," meaning there is no tax or penalty. The ordering rules in IRS Publication 590 are for nonqualified distributions, and the 5 year aging of individual conversions is relevant only to the premature distribution penalty.

-- Phil Marti Clarksburg, MD

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Phil Marti

That's great news. Thanks for the info!

- Tom

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tom

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