Roth account
With a newly created Roth do you need to have the waiting period begin again. The client currently has another Roth that qualifies under the five years old rule. Due to the types of investments he must keep them seperate.
With a newly created Roth do you need to have the waiting period begin again. The client currently has another Roth that qualifies under the five years old rule. Due to the types of investments he must keep them seperate.
Permalink Submitted by Alan Spross on Wed, 2010-06-09 19:30
The 5 year holding period for a Roth to become qualified begins on Jan 1 of the first year for which a valid Roth contribution is made. Additional accounts do not require any new holding period.
Conversions have a different 5 year holding period to eliminate the early withdrawal penalty. This holding period is separate for each conversion contribution regardless of which Roth account receives the conversion funds.