Hi all,
Can someone help me clarify the roth ira 5 year conversion rule and withdraws before turning 59.5. So for example, I do a 5k conversion this year and I use that money to buy vti. Fast forward it’s 2026 i’m 50 and I want to take that money out for spending and sell vti which has gone up to 6k… Can I take the full amount of 6k out tax free or can I only take 5k out tax free and if I wanted to take the 6k out i would have to pay taxes on the 1k? Am I understanding the this correctly?
Can someone help me clarify the roth ira 5 year conversion rule and withdraws before turning 59.5. So for example, I do a 5k conversion this year and I use that money to buy vti. Fast forward it’s 2026 i’m 50 and I want to take that money out for spending and sell vti which has gone up to 6k… Can I take the full amount of 6k out tax free or can I only take 5k out tax free and if I wanted to take the 6k out i would have to pay taxes on the 1k? Am I understanding the this correctly?