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Roth 5 year rule - quick question
Old 12-06-2019, 10:53 AM   #1
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Roth 5 year rule - quick question

If you roll over the Roth from one investment firm to another, the 5 year period doesn’t start over, does it?
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Old 12-06-2019, 11:02 AM   #2
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I don't think so:

https://www.kitces.com/blog/understa...d-conversions/

"Notably, under Treasury Regulation 1.408A-6, Q&A-2, for the purposes of this 5-year rule the clock starts the first time any money is funded into any Roth IRA, whether by contribution or conversion. There is not a new 5-year clock for each Roth contribution, nor for each Roth account that is held. "
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Old 12-06-2019, 11:45 AM   #3
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Quote:
Originally Posted by PointBreeze View Post
If you roll over the Roth from one investment firm to another, the 5 year period doesn’t start over, does it?
No, the start is the first deposit to a Roth.... I presume as long as that Roth or a successor rollover Roth exists.

I think if you had a Roth, took the money out and closed it and then later established another Roth that it would start over but if you go back as far as the current Roth and any predecessor Roths that is when the 5-year clock starts.
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Old 12-06-2019, 04:29 PM   #4
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Thank you!

Thank you both!
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Old 12-07-2019, 10:42 AM   #5
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Think of it this way, the IRS only knows about your tax forms, which when you contributed or converted you filed.. you don't file tax info when you move it.

I had to think about that as I had contributed $12k into my ROTH before I hit the income cap. I had invested in unwisely thru an "advisor" who managed to loss money over the course of 10 years, so when I transferred it to Vanguard, I only had $11k and some change. It took me a minute to realize I could still pull out the full $12k tax free as a contribution and it wouldnt matter that Vanguard received less than that.
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Old 12-09-2019, 03:18 PM   #6
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Some money in my Roth has been in there for 10 years or more making it OK to be withdrawn from the account any time.

How or who keeps track of when the 5 years are up on any new conversion $ that is being added to the Roth account?
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Old 12-09-2019, 04:09 PM   #7
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Some money in my Roth has been in there for 10 years or more making it OK to be withdrawn from the account any time.

How or who keeps track of when the 5 years are up on any new conversion $ that is being added to the Roth account?
You do via pt III of F8606 but IRS can certainly check your work.

btw the first paragraph is a bit loose..............your contributions are always available to withdraw at any time so does need to be there 10 yrs. Your earnings are not available to be withdrawn freely until you are 59.5 even if they have been there 10 yrs.
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