However, Roth IRAs are subject to thefive-year rule. This rule states that you must have held the Roth IRA for at least five years to withdraw earnings—that is, interest or profits—from a Roth IRA. The same rule applies to withdrawing converted funds—such as funds from a traditional ...
your distributionwill still not be a fully qualified Roth IRA withdrawal if the withdrawal wasmade before the five year rule is met. A withdrawal that is made before thefive year time frame is complete will trigger a 10% penalty for an earlywithdrawal much like it would had you withdrawn th...
You may decide to recharacterize both of the Roth accounts and instead use the tax-free space you have available totax-gain harvestinstead (note: you’d have to make this decision before the end of the calendar year, since you wouldn’t be able to wait until year two to harvest your g...
I have always explained the IRA as your own personal investment vehicle. Once you open an account, you can then choose which type of passengers go inside your vehicle. Of course, a mental image of a clown car might be coming to mind at this point. You can have as many clowns in your...
I like the Roth because if it’s not needed for college due to scholarships, grants, and such I can use it for retirement. I have a 401K as primary retirement money, so the Roths are just supplemental. The 18K in plain ol’ savings should go into one of the other 3 I believe due...
401k to Roth IRA Conversion Looking to turn your 401(k) into a Roth IRA? Here's how and why it's a good idea. Roth IRA 5-Year Rule All investors should be aware of these three five-year rules. You may need to wait before you can access your Roth IRA funds. ...