Distributions from converted Roth IRA

[KJ Judd]

Distributions from a Roth IRA are excluded from income if they are not distributed before the end of the five-year taxable period.

Question - Do you determine 5 years by actual days?

If the taxpayer converted his traditional IRA to a Roth in November 30, 2001, he needs to wait until December 1, 2006 to make a tax-free withdrawal?

This is my first taxpayer to start taking distributions and I want to make sure I have the time period right.

[Unregistered]

He doesn't have to wait. He has already passed the 5 year mark. The 5 year period begins with the taxable year for which the contribution is made. I assume the 11/01 contribution was for year 2001. 2001 is the first year,thus 2005 marks the fifth year.

I would also note that a contribution for 2001 could have been made by April 15, 2002 and still start the clock running for 2001.

New York Enrolled Agent

[KJ Judd]

Thanks! I thought it might be something like that but didn't want to err on this.

[Jan]

Also, you can find this information in Pub. 590 age 60