Tax Law (Questions About Taxes)/roth ira distribution

Advertisement


Question
hi john, i opened a roth ira in dec 22, 2010.  i am 83 years old and work part time so i can make earned contribution.  i read that in order to withdraw money of the gain tax free i need to be 59 1/2 and hold account for 5 years.  well, i meet the age requirement. however, i still need to wait for 5 years account since i setup the account.  my question is as follow:  will the five years will be met on 12/22/2105 or can i withdraw after 12/22/2014 if we count 2010 as a full year?  in other words, can you tell me from irs perpective when my account will complete the 5 years if i opened it in 12/22/2010?  thanks

Answer
John,

Thanks for your question.

The five-year period begins on the first day of the tax year in which you make a contribution.  Therefore, the five-years began for you on 1/1/2010. So you can withdraw funds after 1/1/2015.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 About.com. All rights reserved.