Does each Roth conversion have its own individual 5 year rule?

Because only the *dollar amount* of the conversions (and not any earnings thereon or change in value thereof) are eligible for withdrawal without tax or penalty, having separate Roth's doesn't really help with the tracking. It also just makes more work for your Roth IRA custodian.

It definitely would require tracking. What you need to know is the total amount converted each year *and* when the first Roth was opened.

Is there a presumption of first-in-first-out? In other words, if you withdraw from a Roth account to which you deposited conversions over a number of years, when you make your first withdrawal is the presumption that you are withdrawing from the first conversion that was deposited, and after your withdrawals have reached the total of the first conversion that you are next withdrawing from the next conversion, and so on?
 
Is there a presumption of first-in-first-out? In other words, if you withdraw from a Roth account to which you deposited conversions over a number of years, when you make your first withdrawal is the presumption that you are withdrawing from the first conversion that was deposited, and after your withdrawals have reached the total of the first conversion that you are next withdrawing from the next conversion, and so on?

Yes.

Also, if you've made any direct contributions to the Roth, those would come out before any conversions.

Earnings (anything in the Roth beyond contributions and conversions) come out last.
 
But why would you want to withdraw your entire Roth accumulation?
I'm 74 and my Roth is still churning along free of taxation...
I've always thought you would never withdraw from a Roth until all your other sources have been depleted. But now that I'm facing things like IRMAA (etc.) I can see that taking from my Roths just might be worth the loss of the on-going tax advantage in some limited cases. I haven't actually done it yet, but this year - if we need yet more cash - I will consider taking Roth money (a first for me.) YMMV
 
Yes.

Also, if you've made any direct contributions to the Roth, those would come out before any conversions.

Earnings (anything in the Roth beyond contributions and conversions) come out last.
Thank you! That was the missing piece of the Roth usage puzzle for me. If there is a presumption of FIFO-ordered conversions and withdrawals, now it is clear how one can keep track of from which conversion one is withdrawing. The additional information in your post above is helpful, too.
 
You can do it either way, but the most common way is to use a single Roth account.

Because only the *dollar amount* of the conversions (and not any earnings thereon or change in value thereof) are eligible for withdrawal without tax or penalty, having separate Roth's doesn't really help with the tracking. It also just makes more work for your Roth IRA custodian.



It definitely would require tracking. What you need to know is the total amount converted each year *and* when the first Roth was opened. Oh, and one's basis in their traditional IRA, if any. The amount converted each year should show up on the 5498s sent each year by the IRA custodian, but many people don't save those because it's not immediately obvious why anyone should.

Then, armed with that information, you just fill out the appropriate parts of Form 8606. But Form 8606 has embedded in it a bunch of complexity, and it's a hard form to fill out IMHO except for the easiest situations.
So to avoid these complications, I can stop Roth conversions 5 years before any withdrawals. After those 5 years, all the converted money plus any growth will be tax free as I’m over 59.5? Or I only need to track the last 5 years of conversions assuming I plan to start withdrawing at a certain age?
 
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