Roth IRA (5 year rule)
When a Roth IRA owner closes their account and subsequently establishes a new Roth IRA does a new 5-year clock start or do they get the beneficiary of the time accumulated when the original account
Question regarding the Roth IRA 5-Year Rule — When a Roth IRA owner to closes their account and subsequently opens a new Roth IRA, does a new 5-year clock start, or does the time accumulated from the original account carry over to the new account?
Thank you in advance
Permalink Submitted by Alan - IRA critic on Fri, 2025-04-11 12:51
As long as the contribution is not an excess contribution, the 5 year clock starts for the year of the first contribution and remains in place permanently, not only if the custodian is changed but also if the Roth is closed entirely and restarted years later.