The five-year rule for initial Roth IRA contributions
To take tax-free distributions from a Roth IRA, you must wait until at least five years have passed from the time you made your first Roth IRA contribution.
However, the clock doesn't start ticking on the day you put the money into your account. It begins on the first day of the tax year in which you made your contribution. If you make your contribution on April 10, 2026, but designate it as a contribution for the 2025 tax year, then the clock starts ticking on Jan. 1, 2025, and the five-year period ends Jan. 1, 2030.
The five-year rule supersedes other rules. That means that if you have met other requirements, but you didn't make your contribution more than five years ago, you cannot take a tax-free distribution.
The five-year rule for Roth conversions
If you converted a traditional IRA or 401(k) to a Roth account, a different five-year rule applies.
If you withdraw money from a converted traditional account and aren't yet 59 1/2, you will be required to pay a 10% penalty for all early withdrawals. This includes paying the penalty on the amount that was converted, even though you were already taxed on the money when you did the Roth IRA conversion.
The five-year clock applies separately to each new conversion you make. Like the other five-year rule, it starts on Jan. 1 of the year you make the conversion. Unlike with Roth IRA contributions, you can't designate a conversion for the previous year if you make it before the tax filing deadline.
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