The Two 5-Year Roth IRA Rules Explained | Here's How They Work

There are two different 5-year rules for Roth IRA accounts. One applies to Roth IRA accounts and determines, in part, whether the withdrawal of earnings is subject to income tax. The second applies to Roth IRA conversions and determines whether a withdrawal will trigger the 10% penalty tax.

In this video we walk through both 5-year rules. We'll cover what they are, how they work, and what it means for retirement savings.

These are complicated rules, so be sure to check out the resources below. And as always, consult a tax professional before making any decisions.

Join the newsletter: https://robberger.com/newsletter/?utm_source=Rob+Berger&utm_medium=ATF+Link&utm_campaign=Newsletter&utm_id=YouTube

————————————
Video Resources
————————————
IRS Publications--
https://www.irs.gov/publications/p590b
https://www.irs.gov/retirement-plans/ten-differences-between-a-roth-ira-and-a-designated-roth-account
https://www.forbes.com/sites/bobcarlson/2021/09/29/what-you-need-to-know-about-the-confusing-roth-ira-five-year-rule/

————————————
Investing Tools
————————————

My Book (Retire Before Mom and Dad): https://amzn.to/2MsRJ9B
Personal Capital (Investment Tracking, Retirement Planning): https://robberger.com/go/personal-capital/yt-5year-rule
New Retirement (Retirement Planner): https://robberger.com/go/new-retirement/yt-5year-rule
Stock Rover: https://robberger.com/go/stock-rover/yt-5year-rule
M1 Finance $30 Bonus (IRA & Taxable Accounts): https://robberger.com/go/m1finance-bonus/yt-5year-rule

————————————
Credit Cards & Banks
————————————

Wells Fargo Active Cash (Cash Back): https://www.allcards.com/go/wf-active-cash/yt-5year-rule
Chase Sapphire Preferred (Travel): https://www.allcards.com/go/sapphire-preferred/yt-5year-rule
U.S. Bank Visa Platinum (0%): https://www.allcards.com/go/usbank-visa-platinum/yt-5year-rule
Axos Bank (High Yield Savings): https://www.allcards.com/go/axos-savings/yt-5year-rule
OnJuno (free checking): https://www.allcards.com/go/onjuno/yt-5year-rule

————————————
Popular Videos
————————————
1️⃣ How to Create a 3-Fund Portfolio: https://www.youtube.com/watch?v=kmw8OpGp2rM
2️⃣ How I Manage 28 Accounts in One App: https://www.youtube.com/watch?v=cQk6EQk3iGg
3️⃣ 7-Step Financial Checkup: https://www.youtube.com/watch?v=mNWGWxKzKTY

#rothira #5yearrule #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

LET'S CONNECT

Youtube: https://www.youtube.com/channel/UC9C17-OMxa-7oRSaCtztObw?sub_confirmation=1

Facebook: https://www.facebook.com/financialfreedomguy/

Twitter: https://twitter.com/Robert_A_Berger

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.