Our Portfolio, One Year After Our EJ "Jailbreak"

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Topic Author
pedalman701
Posts: 71
Joined: Wed Jul 01, 2020 7:12 pm

Re: Our Portfolio, One Year After Our EJ "Jailbreak"

Post by pedalman701 »

retiredjg wrote: Fri Jul 02, 2021 10:02 am Of course, you never have to do Roth conversions on Her tIRA if you don't want to. It can be good to have some money in tIRA.
True. But lakpr made the astute observation that it may be better to start drawing the tIRA money now at 12% tax before the rate increases to 15%.
A Recovering Jonesoholic | 55% US/10% Intl/35% Bonds
RCL
Posts: 570
Joined: Sat Jul 05, 2014 2:48 am

Re: Our Portfolio, One Year After Our EJ "Jailbreak"

Post by RCL »

Sounds like the OP is on the right path and has gotten lots of good responses.

If I may, user Homestretch said:
"I *believe* that if spouse elects to treat the inherited Roth IRA as spouse’s own, that spouse must satisfy the 5-year requirement in order to withdraw Roth IRA earnings tax free."

Does anyone have any follow-up on this topic? Also what other options are available to the surviving spouse?
Topic Author
pedalman701
Posts: 71
Joined: Wed Jul 01, 2020 7:12 pm

Re: Our Portfolio, One Year After Our EJ "Jailbreak"

Post by pedalman701 »

RCL wrote: Wed Jul 21, 2021 1:19 pm Sounds like the OP is on the right path and has gotten lots of good responses.

If I may, user Homestretch said:
"I *believe* that if spouse elects to treat the inherited Roth IRA as spouse’s own, that spouse must satisfy the 5-year requirement in order to withdraw Roth IRA earnings tax free."

Does anyone have any follow-up on this topic? Also what other options are available to the surviving spouse?
Her IRAs are pretty much her options, since she's a homemaker. She is a joint owner of our other accounts.
A Recovering Jonesoholic | 55% US/10% Intl/35% Bonds
HomeStretch
Posts: 6504
Joined: Thu Dec 27, 2018 3:06 pm

Re: Our Portfolio, One Year After Our EJ "Jailbreak"

Post by HomeStretch »

RCL wrote: Wed Jul 21, 2021 1:19 pm Sounds like the OP is on the right path and has gotten lots of good responses.

If I may, user Homestretch said:
"I *believe* that if spouse elects to treat the inherited Roth IRA as spouse’s own, that spouse must satisfy the 5-year requirement in order to withdraw Roth IRA earnings tax free."

Does anyone have any follow-up on this topic? Also what other options are available to the surviving spouse?
OP’s edited post shows a Roth IRA balance for spouse which means the 5-year clock for an initial Roth IRA has now started.

A surviving spouse has the option to treat an Inherited IRA from a spouse as their own. Or to keep it as an Inherited IRA.
RCL
Posts: 570
Joined: Sat Jul 05, 2014 2:48 am

Re: Our Portfolio, One Year After Our EJ "Jailbreak"

Post by RCL »

HomeStretch wrote: Wed Jul 21, 2021 2:39 pm
RCL wrote: Wed Jul 21, 2021 1:19 pm Sounds like the OP is on the right path and has gotten lots of good responses.

If I may, user Homestretch said:
"I *believe* that if spouse elects to treat the inherited Roth IRA as spouse’s own, that spouse must satisfy the 5-year requirement in order to withdraw Roth IRA earnings tax free."

Does anyone have any follow-up on this topic? Also what other options are available to the surviving spouse?
OP’s edited post shows a Roth IRA balance for spouse which means the 5-year clock for an initial Roth IRA has now started.

A surviving spouse has the option to treat an Inherited IRA from a spouse as their own. Or to keep it as an Inherited IRA.
Sorry, I missed this response :)

I don't think I asked the correct question as I don't know the difference between of those two options.

I don't want spouse to have to wait 5 years before they could withdraw Roth IRA earning tax free, so should they re-title the Roth to their name, or keep it as an inherited Roth?
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