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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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hulagrl
hulagrl
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hulagrl
hulagrl
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09/30/10 12:34pm PDT
Viewed by asker 10/28/10 8:17pm PDT

2010 Tradional IRA to Roth conversion

Traditional IRA conversion to Roth IRA in 2010.

Question: is the conversion subject to the 5 year participation rules for distributions if the taxpayer is over 59 1/2?

 

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mchan1
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mchan1
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10/18/11 11:30am PDT

You're confusing the two IRA types.

Generally, for Roth contributions, you must leave the contributions in the account for 5 years before taking a distribution from a Roth account. The only exception (that I'm aware of based on dealings with other tax accountants and financial advisors) is that the taxpayer can withdraw the principal amount within the 5 year limit but do NOT touch the earnings.

Also, the Roth conversion from traditional IRA is subject to tax upon conversion so 1) the entire amount of the conversion is "rolled over/converted" into a Roth account but 2) the taxes should be paid from other sources to preserve the converted amount.

The taxpayer is not obligated to withdraw from his Roth IRA if he/she is over 59 1/2 yrs.

 

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dhhcpa
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10/18/11 11:35am PDT

 The post is over a year old. Why are you digging up old threads?

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mchan1
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10/18/11 12:27pm PDT

OK... just noticed the year end date of 2010 instead of 2011.

Will pay attention more.

Felt like replying.

What's the problem?

Why can't someone just post an opinionated answered instead of being hounded like a troll?

That's what the purpose of this tax forum, isn't it? To post questions and maybe have someone answer it even if it's outdated.

Maybe someone can read the posts later for a simiar question they have and find the question answered.

 There's alot of Qs here but many were never answered.

Guess I'll pass on any questions that's old <Sept 2011 then.

 

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dhhcpa
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10/18/11 1:31pm PDT

 You are certainly welcome to answer whatever you prefer.  

When these old threads are answered, it pulls them to the top of the list.  For those of us who try monitor the questions in our spare time, in hopes of helping someone, it confuses the order of things.  

And although the original poster MAY be monitoring the question, most likely they aren't or have asked a second time.

I'm sure others will weigh in on the subject with a better explanation.

 

Edit:  Here is a link to the second question with answer:

http://community.intuit.com/posts/traditional-ira-conversion-to-roth-ira-in-2010

 

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tarheelgirl
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10/18/11 1:38pm PDT

I think Debi gave a very good explanation.  Besides, if the poster gets email notification of comments to their questions, I don't image they would want an email for a question that is a year old.  I know I wouldn't.  I would guess Debi is correct.  The questions were probably asked somewhere else or researched and answered on their own (which is the best way for questions to be answered if possible).

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IRMN
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10/18/11 1:40pm PDT

There are a couple of income averaging questions still open from 1979 if you want to give them a shot next.  Might as well get those cleared up before we answer any more questions from today.

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mchan1
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10/18/11 1:42pm PDT
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Thanks for the notes.

I'll pay more attention to the posting dates from now on.

 

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