How the 2 Roth IRA 5-Year Rules Work
Jul 2, 2018
By Denise Appleby, APA, CISP, CRC, CRPS, CRSP
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.