Roth Ira distibution after 65 years old

[Guest vince]

If you're 65 years old and made conversions from your standard IRA to Roth IRA in years 1999 $10,000, in 2000 $10,000 and in 2001 $10,000 a total of $30,000. This total amount appreciates to $45,000 in 2003 which is a 5 year waiting period since 1999.

Can the whole amount of $45,000 be withdrawn in 2003 without penalty? If not how much can be withdrawn in 2003?

[BPickerCPA]

The five year waiting period when the first Roth money went into the account in 1999 (it's a MORE THAN five year period) ends after 2003. If you convert $40K and take out $45K in 2003, you will be taxed on $5K. If you wait until 2004, nothing will be taxed. You will never pay a 10% penalty since you are over 59½.