Roth withdrawals and Roth conversions

Jengwen
Jengwen Member Posts: 1 Newcomer
in General

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.

Tagged:

Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,017 image
    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 Because your Roth accounts are over five years old and you are 61, both contributions and earnings can be withdrawn tax-free.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.

Categories