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... ———————————— Video Resources ———————————— IRS Publications-- https://www.irs.gov/publications/p590b https://www.irs.gov/retirement-plans/... https://www.forbes.com/sites/bobcarls... ———————————— Investing Tools ———————————— My Book (Retire Before Mom and Dad): https://amzn.to/2MsRJ9B Personal Capital (Investment Tracking, Retirement Planning): https://robberger.com/go/personal-cap... New Retirement (Retirement Planner): https://robberger.com/go/new-retireme... Stock Rover: https://robberger.com/go/stock-rover/... M1 Finance $30 Bonus (IRA & Taxable Accounts): https://robberger.com/go/m1finance-bo... ———————————— Credit Cards & Banks ———————————— Wells Fargo Active Cash (Cash Back): https://www.allcards.com/go/wf-active... Chase Sapphire Preferred (Travel): https://www.allcards.com/go/sapphire-... U.S. Bank Visa Platinum (0%): https://www.allcards.com/go/usbank-vi... Axos Bank (High Yield Savings): https://www.allcards.com/go/axos-savi... OnJuno (free checking): https://www.allcards.com/go/onjuno/yt... ———————————— Popular Videos ———————————— 1️⃣ How to Create a 3-Fund Portfolio:    • How to Create a 3 Fund Portfolio | A Begin...   2️⃣ How I Manage 28 Accounts in One App:    • How I Manage 28 Financial Accounts in One ...   3️⃣ 7-Step Financial Checkup:    • A 7-Step Annual Financial Checklist for 2021   #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:    / @rob_berger   Facebook:   / financialfreedomguy   Twitter:   / 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.