Roth withdrawals and Roth conversions

Jengwen

Hi, I'm 61 yrs old, recently retired. I have 2 Roth accounts that I established well over 5 yrs ago. I also have a Tesphe account through my work. I'm currently consulting a financial advisor about what to do from here now that I'm fully retired.

My question is….

Can I withdraw supplemental income from my existing Roth accounts while also making Roth conversions from my Tesphe account? I'm wanting to hold off on receiving Social Security so that I can keep my income at a level that will allow me to convert money at a lower tax rate into a new Roth account opened with my financial advisor. I realize I will have to pay tax on the conversions. I just want to make sure it's no problem to use my existing Roth account as tax free supplemental income.

MatthewD

Hello JenWen,

Yes, you can withdraw from your existing Roth accounts tax-free while making Roth conversions from your TSP, as you are over 59½ and have met the 5-year rule. Because your Roth accounts are over five years old and you are 61, both contributions and earnings can be withdrawn tax-free. The conversions from the TSP account will likely be taxable.