This is from Fidelity -
“The Internal Revenue Service (IRS) requires a waiting period of 5 years before withdrawing balances converted from a traditional IRA to a Roth IRA, or you may pay a 10% early withdrawal penalty on the conversion amount in addition to the income taxes you pay in the tax year of your conversion. (There is an exception to the penalty for withdrawals if you are age 59½ or older.)
But the clock starts on January 1 of the year you do the conversion—no matter when during the year it happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years.
Important to know: The 5-year rule is counted separately for each conversion. The same rules apply to so-called backdoor Roth IRA conversions.”
The exceptions mentioned will likely not affect the majority of retirees but could in select instances. You will still be on the hook for a 10% penalty, regardless of age.
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