By Ian Berger, JD
IRA Analyst
Question:
If I have had my Roth IRA for 20 years and I do a conversion from my traditional IRA, is the five-year rule in effect for each conversion? I’m under the impression that once I held my Roth for more than five years I don’t have to be concerned about the five-year rule.
Note that I am over age 70.
Dan
Answer:
Hi Dan,
You’re in good shape. The amount you convert will always be available for withdrawal tax-free. In your case, the converted amount will also be immediately available penalty-free since you’re at least age 59½. (The five-year rule on penalty-free distributions of conversions doesn’t apply once you turn age 59½.) You can also withdraw earnings on the converted amount without tax or penalty at any time. That’s because you’re at least age 59½ and have held a Roth IRA for at least five years. (In other words, you’ve satisfied the five-year rule on tax-free distributions of earnings.)
Question:
Hello!
I will be age 73 on February 9, 2026. I am still working and have a current 401(k) account. I don’t intend to retire but plan to work for a couple of years, until I turn age 75.
I also have a traditional IRA account. To avoid taking required minimum distributions (RMDs) from the IRA account, I am considering rolling over that account to my 401(k) account. Please let me know if I could do that to avoid RMDs.
Jaywanth
Answer:
Hi Jaywanth,
Sorry, but that won’t work. Since you are turning age 73 this year, 2026 is your first RMD year for your IRA. This means you must first take the 2026 RMD before doing a rollover to your 401(k). That’s because the first dollars distributed out of your IRA in 2026 are considered RMDs, and RMDs can’t be rolled over. (Whether you could still roll over the remaining part of your IRA to the 401(k) depends on whether your 401(k) plan allows rollovers into the plan.)
If you have technical questions you would like to have answered, be sure to submit them to mailbag@irahelp.com, to be answered on an upcoming Slott Report Mailbag, published every Thursday.
https://irahelp.com/roth-ira-distribution-rules-and-rollovers-of-required-minimum-distributions-todays-slott-report-mailbag/