I had a Roth IRA at one fund company, started in 1999. That account is now closed. If I open a Roth at another fund company, does the 5-year period still start from 1 Jan 1999?
If I open the new Roth by converting from a traditional IRA, does the 5-year period for the conversion start with 1 Jan 1999, or does it start over?
As long as the original account was not closed until after January 1,
2004 you have met one of the prime conditions for "qualified" distributions (i.e. tax free earnings). If the account was closed prior to Jan 1, 2004 (i.e. less than 5 tax years), you will need to make up the missing months with the new account.Now you are talking about a DIFFERENT 5 year holding period, one that applies only to conversion contributions. It also applies only while you are not yet 59-1/2. EACH conversion starts a NEW 5-year holding period which has nothing to do with the original account opening. Once you turn 59-1/2 you no longer have to worry about the conversion holding period.
Thanx.
It appears that I closed the account in 2006, so I'm OK.
Thanx.
Alas, I am over 59.5 years of age, so this will be a non-issue.
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