If a 75 Year Old Person Converts Part of his IRA to a Roth IRA, Can He Withdraw the Assets if He Needs to? Or

Question

... does he have to wait 5 years?

The reason for converting would include:

- taking advantage of the older person's lower tax bracket. Otherwise, the younger beneficiary may be paying at a higher tax rate when he/she is required to take distributions.

Answer 1

He can withdraw them at any time. There is no waiting period. But since the person is 75 years old, I am sort of wondering why he wishes to do the conversion. I really can not see a great deal of benefit unless of course he/she is in super health with a life expectancy of 10 more years. Remember that all conversions are taxable in the year in which they occur and be careful or the conversion will drive you into a higher tax bracket and may also effect the taxation of the SS.

Answer 2

At 75 there is NO reason to convert. They would pay taxes on the FULL amount at conversion, and the future income will not be enough to offset the immediate hit. Last I checked, a 75 year old would be REQUIRED to begin withdraws in less than 5 years.