Is there a 10% early withdraw penalty for people under age 59.5 for converting traditional IRA to Roth IRA?

Forum|Forum|10 months ago
May 29, 2025
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I've been thinking about rollover some money from my traditional IRA to Roth. I'm under 59.5 and have read online that if the 10% early withdrawal penalty is not accessed at the time of the conversion, and if I don't withdraw the converted money from my Roth IRA account until 5 years later, then the 10% penalty won't be triggered either. Is my understanding correct?

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Opus 17

Correct. There is no penalty for early withdrawal on a conversion from traditional IRA to Roth IRA.

There will be a 10% penalty for early withdrawal if you withdraw the converted funds in less than 5 years, except that if you are over age 59-1/2 when you make the withdrawal, there is no penalty even if it has been less than 5 years.