Reply To: Question Regarding Five Year Rule for Roth IRA Withdrawals -Alan S. Please Help!

Home Fairmark Forum Retirement Savings and Benefits Question Regarding Five Year Rule for Roth IRA Withdrawals -Alan S. Please Help! Reply To: Question Regarding Five Year Rule for Roth IRA Withdrawals -Alan S. Please Help!

#1362
Alan S.
Participant

Your Roth IRA accounting must be kept separate for each of your Roth IRAs. I wonder if your #s are correct, because the SP 500 index has doubled since Nov, 2012, but your Roth IRA has tripled. That means you have doubled the SP 500 return, which is possible but probably unlikely.

Going by your contribution info, you can withdraw 113,359 from your Roth and 5000 from your wife’s without tax or penalty.

As for the breakdown, you DO need to keep accurate records of your Roth IRA basis in order to correctly report the distributions on Form 8606. Each spouse would file an 8606 showing the amount of regular Roth contribution basis and the amount of conversion basis on separate lines. Your regular contribution basis is 63,923 and your wife’s is 5000. Your conversion basis is 49,436. The remaining balance is apparently all gains which would come out last subject to tax and penalty.