Q. If I convert a traditional IRA to a Roth, how long do I have to wait to take penalty-free withdrawals?
A. You have to wait 5 years from the start of the tax year in which you made the conversion. That means if you convert a regular IRA to a Roth IRA in January 2020, you must wait until January 2025 to avoid penalties. But depending on when you convert your account, you may not need to wait a full 60 months.
For example, if you convert an account in December 2020, you will still need to wait until January 2025, which means your countdown will have 11 fewer months.
A. You have to wait 5 years from the start of the tax year in which you made the conversion. That means if you convert a regular IRA to a Roth IRA in January 2020, you must wait until January 2025 to avoid penalties. But depending on when you convert your account, you may not need to wait a full 60 months.
For example, if you convert an account in December 2020, you will still need to wait until January 2025, which means your countdown will have 11 fewer months.
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