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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Question about the waiting period: Say someone were to convert 100K/ year for 5 years.
In year 6 would the money converted in year 1 be available? I knew about the 5 year wait, but it isn't clear to me if every conversion freezes ALL of the money in the Roth IRA, or only the money converted over the last 5 year period.
EDIT: I knew I should have read ALL of the responses before I asked any specific questions, but I was afraid I'd forget to ask this one. Now that I've read ALL of the responses, I'm still unsure what the answer is, as there is disagreement. Which is, of course, why I will be doing further research and consulting a pro (fee based, not commission based), and reading the Craig Wear information (thanks for the tip!).