5 Key Facts on the Roth IRA 5-Year Rule for Tax-Free Distributions
Aug 6, 2018
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By Denise Appleby, APA, CISP, CRC, CRPS, CRSP
The five-year period is one of the requirements that must be met for a distribution from a Roth IRA to be qualified and therefore completely tax-free. When tracking this five-year period, one must have a clear understanding of which transaction starts the clock and which ones do not. One should also be aware of circumstances that accelerate the five-year clock for certain individuals.