Strong Tower Advisors · Educational guide
Five-year rules and withdrawals
When Roth money can come out tax-free, and how RMD rules differ.
The five-year rules
Two separate five-year clocks apply, and they are easy to confuse:
- Qualified distribution clock. Earnings come out tax-free only if at least five tax years have passed since January 1 of the year of your first contribution or conversion to any Roth IRA, and you are 59½ or older, disabled, a beneficiary after the owner's death, or using up to $10,000 (lifetime) for a qualified first-time home purchase. This clock starts once and covers all of your Roth IRAs.
- Conversion clock. Each conversion starts its own five-year period. If you are under 59½ and withdraw converted money before that period ends, the 10% additional tax can apply to the part of the conversion that was taxable, unless an exception applies.
Withdrawals are treated as coming out in a set order: regular contributions first, then conversions (oldest first), then earnings. That ordering is why contributions can usually be taken out at any time without tax or penalty.
How required minimum distributions differ
| Account | RMDs during the original owner's life? |
|---|---|
| Traditional IRA, SEP and SIMPLE IRA, pre-tax 401(k) | Yes, beginning at the applicable RMD age |
| Roth IRA | No |
| Designated Roth account in a 401(k) or 403(b) | No, beginning in 2024 (SECURE 2.0) |
Beneficiaries who inherit a Roth IRA generally do have distribution requirements, and many non-spouse beneficiaries must empty the account within 10 years. An RMD that is due for the year cannot itself be converted to a Roth; it must be taken first.
Frequently asked questions
What is the Roth IRA five-year rule?
There are two. Earnings are tax-free only after five tax years from your first Roth IRA contribution or conversion and after age 59½, disability, death or a qualified first-time home purchase. Separately, each conversion has its own five-year period; withdrawing converted money before it ends while under 59½ can trigger the 10% additional tax unless an exception applies.
In what order do Roth IRA withdrawals come out?
Regular contributions come out first, then conversions (oldest first), then earnings. That ordering is why contributions can usually be taken out at any time without tax or penalty.
Do Roth IRAs have required minimum distributions?
Not for the original owner. Beginning in 2024, designated Roth accounts in 401(k) and 403(b) plans also have no lifetime RMDs. Beneficiaries who inherit a Roth account generally must take distributions under the inherited-account rules.
Sources
- IRS Publication 590-B — Distributions from IRAs (Roth five-year rules and ordering)
- IRS — Retirement plan and IRA required minimum distributions FAQs
- IRS — Retirement topics: designated Roth account
Educational only. This guide is not individualized investment, tax, legal or insurance advice and does not recommend any account, transaction or product. Rules and individual circumstances vary. Verify current official information and consult qualified professionals.