In practice, each time you convert assets into a Roth IRA you must treat that conversion as its own segment of assets, which must remain in place for five years. However, the conversion rule does ...

If you fund a Roth IRA in April 2024 for the calendar year of 2023, the five-year rule starts as of Jan. 1, 2023. You could begin withdrawing earnings from the account on or after Jan. 1, 2028.

Also note that Roth IRA conversions have their own five-year clock, but that rule determines whether the conversion principal will avoid tax penalties. Roth IRA income and contribution limits.

Roth IRAs can be an attractive addition to your portfolio, but boy, are they surrounded by rules and regulations. It's easy ...

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 ...

For example, assume you have a Roth IRA in place and complete a conversion when you’re 56. If you want to withdraw that converted principal two years later at age 58, the withdrawal would be ...

In your case, you meet this five-year rule because your Roth IRA has been open for more than five years (satisfying condition 1) and you are over 59 ½ (meeting condition 2).

You've already satisfied that rule. The second five-year rule has to do with early withdrawal penalties, and only applies to people who do Roth conversions when they're younger than 59½.

I did a separate conversion in January 2022, so how does the five-year rule apply? I converted $4 million in all and my cost basis was around $600,000. I’ve had the Roth open for more than 20 years.

Also note that Roth IRA conversions have their own five-year clock, but that rule determines whether the conversion principal will avoid tax penalties. Roth IRA income and contribution limits.

The Roth IRA five-year rule says you cannot withdraw earnings tax-free until it’s been at least five years since you first contributed to a Roth IRA account. This five-year rule applies to everyone ...

Not all Roth IRA withdrawals are tax-free. After opening and contributing to a Roth IRA, you'll need to wait five years to begin tax-free withdrawals of investment earnings.