Permalink Submitted by Alan - IRA critic on Mon, 2023-05-01 15:50
There are two 5 year holding periods. The first one in addition to reaching 59.5 determines when the Roth IRA(s) become qualified and earnings are tax free. That holding period starts with the first legal Roth contribution of any type.
The second 5 year holding period applies to conversions for purposes of the 10% penalty. This requirement is eliminated at age 59.5 and therefore would not apply to any conversions done after 59.5 or any prior conversions that had not been held 5 years upon reaching 59.5.
Permalink Submitted by Alan - IRA critic on Mon, 2023-05-01 15:50