Understand the 2 Five-Year Rules for Roth IRA Distributions

And, 10 things you should know about long-term care insurance. Created for {EMAIL} | [Web Version]( August 29, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Instagram ]( [Youtube]( [SIGN UP](format=multipart) ⋅ [WEBSITE]( [] INTRODUCTION [] [Stepping Into Tax and Penalty-Free Roth Distributions]( I’ve been a fan of Roth IRA accounts since their inception. There are very few ways to create a tax-free stream of income in retirement and Roth IRAs are the easiest way for most people to do so. The ability to take tax and penalty-free distributions is conditional. There are two distinct five-year rules for taking these types of distributions and one relates to the dates of your contributions and the other is tied to the date of any Roth conversions. Editor of The Kiplinger Tax Letter Joy Taylor provides a [thorough understanding of when the five-year rule clock starts for tax-free and penalty-free earnings](. 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