Quote:
Originally Posted by Plinker
Don’t forget, you will not be able to access the converted ROTH money for a period between 4 years plus one day to 5 years, depending on what date you do the conversion. Regardless of the date of your conversion, the IRS starts counting the 5 year wait on January 1st of the year of conversion. So, a conversion on July 1st has a 4 1/2 year wait while a December 31st conversion only waits 4 years plus one day. Consider waiting until mid-December to convert. Each conversion starts a new wait period.
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I believe this needs to be corrected. You can withdraw the original principal from the Roth conversion at any time without penalty. It is the earnings on the original converted principal that are subject to the 5 year rule.