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Ask an Advisor: If I Do a Series of Roth Conversions Before 73, Does the 5-Year Rule Apply to My Beneficiary?

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73% Informative

There are two five-year rules for Roth IRAs: One that only needs to be satisfied once and another that applies to each individual Roth conversion.

The first five year rule dictates that in order for a Roth IRA distribution to be qualified, you must have opened and maintained a.

Roth IRA for at least five years (in addition to being 59 or older ) You only have to satisfy this rule once in your lifetime.

Market downturns early in retirement can deplete savings faster.

Consider a “bucket strategy” allocating funds across different time horizons.

An emergency fund should be liquid -- in an account that isn't at risk of fluctuation like the stock market.

A high-interest account allows you to earn compound interest.