Roth IRA – 5 Year hold
I’ve been receiving conflicting information re: the following…
For example, if a Roth IRA owner previously met the 5-year hold and subsequently closed the account through full account liquidation. Now, he would like to do a Roth conversion – does he still get credit for the 5-year hold period (for the closed Roth IRA)?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2025-05-28 11:21
Yes, the first Roth contribution year starts the clock as long as it is not an excess contribution. If all Roth accounts are then closed the clock remains in place based on that first contribution year regardless of whether it was a regular or conversion contribution.