Roth 5 year rule
8 years ago 2015 I contributed to first Roth Ira. Had a problem with Roth contribution limit so had to recharacterize to non-deductible traditional Ira.This income limitation continued for next 6 years. Finally in 2022 Roth contribution ok as income was below contribution limit. No more work or earnings after 2022 and no more Roth contributions.
For Roth 5 year rule to withdraw all contributions and earnings, does the first year 2015 start the clock despite recharacterization or is it 2022?
Permalink Submitted by Alan - IRA critic on Tue, 2023-08-01 21:32
The clock starts with the year of the first allowable Roth contribution (2022) that was not removed by the due date or recharacterized, whether the excess amounts were recharacterized or not. If you were allowed a partial Roth contribution in one of those years, that would start the clock unless you recharacterized or removed it by the due date.