taxable distributions?

[Guest bob1]

I am over 591/2. I plan on making TIRA conversions th ROTH over the next six years. As I understand it the earnings for each conversion is taxable if taken out less than five years after the conversion. Does this mean I have to segragate each conversion so as not to mix the earnings of year one conversion with say earnings from year four conversion?

[BPickerCPA]

Your understanding is incorrect. You need not wait five years for each conversion.

[Appleby]

Further, the earnings would be taxable only if the distribution is non-qualified. However, based on the ordering rules, you will never get to the earnings until you have withdrawn all regular contribution amounts, plus all conversion amounts.

See http://www.retirementdictionary.com/Ordering-rules.htm and

http://www.retirementdictionary.com/qualif...bution-roth.htm