Roth IRA Contributions Over Age 60

[Guest browningdp]

I am 60 and I opened my Roth IRA five years ago. Anyone know if I can continue to make contributions without having to wait five years to withdraw the proceeds on a tax free basis? Another way to ask this question: is each Roth IRA contribution subject to the five year waiting period before distribution on a tax free basis, or is the waiting period waved once the account holder reaches age 60 and the account has been open for at least five years? An example: the current account balance is $4000, was opened five years ago, and the account holder is age 60. If $4000 is contributed for 2003 and 2004 (and the balance has grown to $20,000 by 2005), can $13,000 be withdrawn on a tax free basis in 2005? Thanks for the info.

[Guest rkal66]

The 5 years is counted from when you first opened the account, so once the account has been opened the 5 years, and since you are over age 59.5, you are pretty much free to withdraw at any time. But the "contibution" part of your balance can be withdrawan at any time--it is only earnings that have to remain in for 5 years from when the account was opened.

Dick

[Appleby]

All your future Roth IRA distributions will be tax and penalty free, because they will be considered “qualified distributions”. See http://www.investopedia.com/terms/q/qualif...istribution.asp for a definition