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Originally Posted by Boomer
The part about the 5-year rule that I don't know if I have straight is whether new conversions have to wait 5 years. Somewhere I got the idea that any new money coming through a conversion had to wait its own 5 years. I hope I am wrong. If I am not wrong, that means that early boomers might need to be more aware of the 5-year rule if doing conversions now -- in case they might think they want the money for themselves sooner than 5 years.
Btw, you are doing exactly what I wish I had done more of. Did it for a while, although the accountant at the time asked me why I wanted to pay the kids' taxes. I did not see it like that. I saw that we might want to access some tax-free money for ourselves down the road.
Boomer
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We should be okay. Our situation is a little different since I was self employed. I have Roth and SEP IRA’s that I’ve been contributing to for years. The IRA that we’re converting now is from the Warden’s 401k/IRA. Even if we have to wait 5 years from three years from now to draw on hers, we can easily get by on mine.