Core Insights - Financial expert Suze Orman emphasizes the importance of opening a Roth IRA without delay, even with minimal contributions, to avoid future tax complications [1] - The Roth IRA allows for tax-free growth of funds contributed after taxes, with specific conditions for tax-free withdrawals of both contributions and earnings [2] Contribution Rules - Contributions to a Roth IRA can be withdrawn at any time without taxes or penalties, regardless of age or account duration [4] - The five-year rule does not apply to original contributions, allowing for immediate access to the contributed amount [4] Earnings Withdrawal Conditions - To withdraw earnings tax-free, account holders must be at least 59½ years old and have maintained the Roth IRA for a minimum of five years [5] - Failure to meet both conditions may result in ordinary income tax on earnings [5] Timing Considerations - Opening a Roth IRA later in life can complicate access to earnings; for instance, an individual starting at age 58 must still wait five years to withdraw earnings tax-free, even if they are over 59½ [6] Conversion Rules - Roth conversions from traditional IRAs have their own five-year rule, with each conversion starting a new five-year period [7] - Early withdrawal of converted amounts before the five-year period, if under 59½, may incur a 10% penalty despite having paid taxes on the conversion [7]