5-YEAR RULE FOR ROTH IRA- FEW PEOPLE KNOW. BE CAREFUL. Direct contributions, or your basis, to a Roth, can be withdrawn anytime, without tears (or taxes). Withdrawals of other sorts of funds, however, are more restricted: Access to them is subject to a waiting period known as the five-year rule. More Below.

🔔 Subscribe for all things retirement, investment, tax, & estate planning [ Ссылка ]

✅ If you enjoyed this video, checkout our Tax-Smart Planning Playlist: [ Ссылка ]
✅ I've also broken down some important information regarding Social Security here: [ Ссылка ]
✅ Or check out our Weekly Market Recaps here: [ Ссылка ]

The Details:
-Though relatively less restrictive than other accounts, Roth IRAs do impose a waiting period on certain withdrawals, known as the five-year rule.
-The five-year rule applies in three situations: if you withdraw account earnings if you convert a traditional IRA to a Roth, and if a beneficiary inherits a Roth IRA.
-Failure to follow the five-year rule can result in paying income taxes on earnings withdrawals and a 10% penalty, too.

The five-year rule applies in three situations:

1. You withdraw earnings from your Roth IRA.
2. You convert a traditional IRA to a Roth IRA.
3. You inherit a Roth IRA.

You need to understand the five-year rule—or rather, the trio of five-year rules—to ensure that withdrawals from your Roth don't trigger income taxes and tax penalties (generally, 10% of the sum taken out).

🆓 If you want to UNWIND your wealth, download our Retirement MEGA Pack which includes a flowchart, checklist, and EBook all about unwinding wealth and evaluating your investments: [ Ссылка ]

Let’s connect 🙋‍♂️:
✔️ Twitter [ Ссылка ]
✔️ LinkedIn [ Ссылка ]
✔️ Facebook [ Ссылка ]
✔️ Instagram [ Ссылка ]

Check us out on your favorite 🔊Podcast Platform 🔊: Spotify, Apple or Google Podcast, search WEALTH PROGRAMMED and give us a FOLLOW!

Are you over age 50 and need retirement help?
🤝 Schedule a free consultation [ Ссылка ]

Not ready yet? No problem...

Sign up for our monthly newsletter here 👉 [ Ссылка ]

Finance tools I find helpful and use routinely:
🧮 [ Ссылка ]
📊 [ Ссылка ]
🔎 [ Ссылка ]

DISCLAIMER: The information provided in these videos is only to be considered helpful hints and education. Nothing said or shown in any of these videos is to be misconstrued as specific tax, legal or investment advice. Consult with your tax, legal or investment professional before acting on anything you see in these videos.

свернуть