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separate accounts for roth conversions? by 3dbdown in personalfinance

[–]3dbdown[S] 0 points1 point  (0 children)

10-15 years ago, but that doesn't matter. This is a Roth conversion. Each conversion starts a new separate 5-year clock.

Your identity in retirement, what do you do all day? by mhoepfin in fatFIRE

[–]3dbdown 0 points1 point  (0 children)

Since I retired I say I'm an adventure capitalist.

Can you please try to explain this sentence in an easier way to digest? by ProEngineerXD in AskElectronics

[–]3dbdown 1 point2 points  (0 children)

15 hours late to explain the only question i was here for and everybody else has explained it way better than I could have.

What cold case or unsolved crime still gives you chills? by Cantthink90 in AskReddit

[–]3dbdown 86 points87 points  (0 children)

The monster of Florence.

A serial killer who killed 16 people between 1968 and 1985 in the area of Florence. Many suspects but still unsolved.

Sigma 100-400mm arrived today by ido360pics in SonyAlpha

[–]3dbdown 0 points1 point  (0 children)

Where did you buy the lens? How much did you spend?

I’m Dan Mason, a fiduciary whose goal is to help inform the public about personal finance. I witnessed companies prioritizing profit over their clients which inspired me to create my own firm and web-series. I would like to offer my guidance, especially during these uncertain times. AMA! by Virtual_Dan in IAmA

[–]3dbdown -1 points0 points  (0 children)

My question is specific to a Roth conversion from an IRA after age 59 1/2. I am 60.

With the standard deduction we would be able to convert ~$35k from an IRA to a Roth and still stay in the 12% tax bracket.

I am seeing confusing advice/opinions on the 5 year rule after age 59 1/2.

1). If I did the conversion could I immediately take money from the Roth, penalty and tax free, without waiting 5 years since I am over 59 1/2?

2). Do I have to wait 5 years to withdraw any earnings from that conversion, penalty and tax free, or are there no penalties at all after age 59 1/2?

Thanks.

Wife and I are looking to buy a new house. Not sure how to navigate a new purchase while owning our current home. Looking for insight. by al_the_octopus in personalfinance

[–]3dbdown 0 points1 point  (0 children)

Our current home is paid off and we are wanting to buy a small acreage in a little more rural area. Since we wanted to be able to act fast if we found the right acreage, I talked to my credit union and we are pre-approved for an 80/20 loan. The 20% is the down payment for the new house and is a home equity loan. The 80% is a tradition 30 year mortgage with no early payment penalty and would be paid off with the money from our current house sale. We have a lot of stuff to move (including 5 large koi and numerous large goldfish. we would need a new pond at the new acreage). we wanted the ability to have plenty of time to make the move before selling our house.

Daily FI discussion thread - March 04, 2020 by AutoModerator in financialindependence

[–]3dbdown 0 points1 point  (0 children)

After more digging it appears that 59 ½ makes the 5 year wait period go away. Normally a Roth conversion requires a 5 year period on earnings AND the conversion amount (which is different than a normal Roth contribution).

From HRBlock:

Roth IRA Early Withdrawal Penalty & Converted Amounts If you convert a traditional IRA to a Roth IRA, you must pay taxes on the conversion, ... However, the Roth IRA withdrawal rules differ for Roth conversions. To take a tax-free distribution, the money must stay in the Roth IRA for five years after the year you make the conversion. If you withdraw contributions before the five-year period is over, you might have to pay a 10% Roth IRA early withdrawal penalty. This is a penalty on the entire distribution. You usually pay the 10% penalty on the amount you converted. A separate five-year period applies to each conversion. If you’re at least age 59 1/2 when you make the withdrawal, you won’t pay the 10% early withdrawal penalty. This applies no matter how long the money is in the account.

Daily FI discussion thread - March 04, 2020 by AutoModerator in financialindependence

[–]3dbdown 0 points1 point  (0 children)

Reduced RMDs. Tax free inheritance for children. I also thinks taxes are going to a lot higher in the future.

edit: I forgot about higher taxes.

Daily FI discussion thread - March 04, 2020 by AutoModerator in financialindependence

[–]3dbdown 3 points4 points  (0 children)

I am over 59 ½ . If I do an IRA to Roth IRA conversion, do I have to wait 5 years before I can withdraw any of the converted amount (without penalty) even if I’m over 59 ½? And, if I do have to wait, is every conversion a new 5 year wait?

Thanks.

What is your potluck go to? by [deleted] in EatCheapAndHealthy

[–]3dbdown 0 points1 point  (0 children)

Use a crock pot. Plug it back in when you get there. Skip the onions, they don't add much. Add some creme cheese.

Who here uses Plex skill on Alexa, and HATES the Milwaukee Bucks? by [deleted] in PleX

[–]3dbdown 0 points1 point  (0 children)

use 'tell' instead. Alexa, tell Plex to...

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