Clarification on Roth Conversions and 5 year Rule

Submitted by REBECCA HINES on Sun, 2025-04-06 15:15

I opened a Roth Account in December 2020 with a Roth Conversion. My understanding is that the clock started at 1/1/2020, so the account is “qualified” starting in 2025. I’ve made additional Roth Conversions in 2022 (for IRA contributions in both 2022 and 2021), 2023 and 2024 so far (by both Back Door Roth conversions and a rollover from a pre tax 401k). Also in 2024 I rolled over contributions from a Roth 401k. I have a separate IRA with basis, so all of my Backdoor Roth conversions had a taxable portion and a non-taxable portion. I am currently 62 years old. My questions are:

Do each of my conversions in 2022, 2023 and 2024 have their own 5 year clock (so those conversions aren’t qualified until 2027, 2028 and 2029)?
Since my account has been opened for the 5 year requirement and I’m over 59 1/2 all distributions all qualified?
My tax program (Turbo Tax) keeps track of the Taxable and Non-taxable portions of my conversions each year. What do I need that information for?

Thanks for your help!

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Permalink Submitted by Alan - IRA critic on Sun, 2025-04-06 18:03

Because your Roth IRA is now qualified, you no longer have to track your contribution basis or report distributions on Form 8606. And any Roth conversion holding periods all ended at 59.5. The entire account is therefore available at any time tax and penalty free.

Q3 – there is no need to enter such info into Ttax once your Roth became qualified.