The Roth IRA five-year rule says you cannot withdraw earnings tax-free until it’s been at least five years since you first ...

The Roth IRA five-year rule states that you can’t withdraw earnings tax-free ... “The five-year period is counted as tax years. So, for example, a Roth IRA conversion made any time in 2023 ...

Here are four examples that illustrate the effect of this first five-year rule: Scenario 1: You are age 60 and you funded your first Roth IRA three years ago. In 2025, you take a distribution. You ...

The Roth IRA five-year rule will not allow you to withdraw tax-free earnings from your account until five years after your first contribution unless you meet certain conditions. In most cases ...

But another rule negates this five-year rule for most people who convert traditional IRAs to Roth IRAs. That’s because the 10% early distribution doesn’t apply once the owner is at least age 59½.

For example, a Roth IRA conversion made at any time in 2024 is deemed as having been made as of January 1, 2024. For that specific 2024 conversion, the account owner would be able to take a ...

The five-year rule for Roth conversions exists to prevent people from using conversions to completely avoid the 10% early withdrawal penalty on traditional IRA assets by simply first converting ...

Let’s say you made your first Roth IRA contribution on April 10, 2025, and applied it to the 2024 tax year. According to the five-year rule, your first tax-free withdrawal of earnings can happen ...

The Roth IRA five-year rule is a catch-all for three rules that apply to Roth IRAs. If you're not mindful of these rules, you could face penalties and taxes on your withdrawals.

For this rule, the five-year period begins on the first day of the tax year in which you converted money from a traditional IRA (or did a rollover from a qualified retirement plan) to your Roth ...

This five-year rule applies to everyone who contributes to a Roth IRA, whether they’re 59 ½ or 105 years old. The Roth IRA five-year rule The five-year rule could foil your withdrawal plans if ...