No, regular Roth IRA contributions are available anytime without tax or penalty. They come out first.
Conversions to Roth come out second in chronological order but must be held 5 years (or until 59.5 if sooner) to avoid the 10% penalty on the taxable portion of the conversion.
Earnings come out last, but will be penalty free at 59.5, and also tax free if at least 5 years has passed from the year of the first Roth contribution (either regular or conversion).
Conversions to Roth come out second in chronological order but must be held 5 years (or until 59.5 if sooner) to avoid the 10% penalty on the taxable portion of the conversion.
Earnings come out last, but will be penalty free at 59.5, and also tax free if at least 5 years has passed from the year of the first Roth contribution (either regular or conversion).
Statistics: Posted by Alan S. — Tue Aug 27, 2024 7:32 pm — Replies 40 — Views 4085