5 Key Facts on the Roth IRA 5-Year Rule for Tax-Free Distributions

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How the 2 Roth IRA 5-Year Rules Work

Two 5-year rules are the benchmarks that determine whether distributions from a Roth IRA are subject to income tax and/or the 10% early distribution penalty. Advisors should encourage clients to keep careful records of Roth activity, lest they get inappropriately charged.

How to Dodge the Top 3 Roth IRA Tax Traps

The promise of tax-free distributions is one of the primary reasons why an individual might choose a Roth IRA over a traditional account. But ‘premature’ distributions could cause a Roth distribution to be taxable.

Special Roth Funding Options for Survivors of Military Service Members

Beneficiaries of military service members have a unique opportunity to place funds into Roth IRAs, which creates an opportunity for tax-free earnings on such amounts. Special rules and deadlines apply, and these must be followed accurately for the funding to comply with regulatory requirements.