Ask an Advisor: Do I Have to Wait Five Years After Converting My $700k to a Roth IRA?

Core Points - The article discusses the complexities surrounding Roth IRA withdrawals, particularly for individuals over 59 ½ who have held their accounts for at least five years [4][6] - It clarifies the confusion regarding the five-year rules applicable to Roth IRAs and conversions, emphasizing that individuals can withdraw funds without penalties under certain conditions [4][6] Group 1: Roth IRA Withdrawal Rules - Individuals over 59 ½ can withdraw any amount from their Roth IRA without incurring tax liabilities or penalties, provided they have held the account for five years [4] - There are two distinct five-year rules: one for original Roth IRAs and another for converted Roth IRAs, which can lead to penalties if not adhered to [6] Group 2: Conflicting Information - The article highlights the common confusion and conflicting information regarding Roth IRA withdrawals, particularly concerning the timing and conditions for accessing converted funds [3][5] - It suggests that individuals should seek clarity on these rules to avoid potential penalties and ensure compliance with IRS regulations [5]