Yet another Roth question

[KCGeezer]

I think I’m right but want to double check if this is correct.

I was over 591/2 when I opened my first Roth in late 2019 and did initial conversion from IRA. Did another chunk early 2020 and then one this year. So as of now, I could withdraw those conversions with no tax.

All gains are taxable withdrawals until January 2 2023.

If I have gains in 2022 the five year clock doesn’t start over does it? Those gains (and any since 2019) will be tax free. Do I have this right?

 

[SecondCor521]

There are two five year clocks.

One has to do with five year clocks on conversions, but since you're over 59.5 I don't think you have to worry about that one.

The other is a five year clock starting when you open your first Roth. This is the one you have to worry about. I don't know as much about this rule since I opened my first Roth ages ago. But I am fairly certain that this clock doesn't restart for any reason, so when it has been five years after opening your Roth account this clock will run out and every withdrawal from your Roth will be tax free. What I'm not certain about is what might be taxable before that date - probably just earnings, which come out last anyway.

Fairly certain, as you suggest, that any gains in the account or additional conversions or contributions don't affect that second five year clock.

 

[Exchme]

Since you are over 59.5, the only clock that affects you is that within 5 years of creation of the Roth, you can only withdraw the amounts you put in without paying taxes. You withdraw your conversions first, so you have access to that much without any taxes due (since it was taxed when coming out of the t-IRA). If you also withdraw gains, those are taxable until that 5 year clock from the first Roth funding date has ticked down. Regardless of what you do, there are no penalties after age 59.5.

See the handy chart at the bogleheads.org wiki:
https://www.bogleheads.org/wiki/Roth_IRA#Distributions

 

[cat4ever]

There are two five year clocks...

The other is a five year clock starting when you open your first Roth. This is the one you have to worry about. I don't know as much about this rule since I opened my first Roth ages ago. But I am fairly certain that this clock doesn't restart for any reason...
Fairly certain, as you suggest, that any gains in the account or additional conversions or contributions don't affect that second five year clock.

One small caveat that I don't think affects the OP, but may affect some. From previous research I think a 401K ROTH will have a separate such 5 year clock than the one that covers all your Roth IRAs outside your 401K. Please correct me if I'm wrong.

 

[SecondCor521]

One small caveat that I don't think affects the OP, but may affect some. From previous research I think a 401K ROTH will have a separate such 5 year clock than the one that covers all your Roth IRAs outside your 401K. Please correct me if I'm wrong.

I'm not at all sure how those work. They came along after I FIREd, so I never had one.

 

[cathy63]

One small caveat that I don't think affects the OP, but may affect some. From previous research I think a 401K ROTH will have a separate such 5 year clock than the one that covers all your Roth IRAs outside your 401K. Please correct me if I'm wrong.

Yes this is true, but if you roll over a Roth 401k into an existing Roth IRA, then the Roth 401k funds inherit the age of the Roth IRA they're rolled into.