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I’ve heard about a five-year holding rule for Roth IRAs, but I don’t understand it. What’s the deal?

April 26, 2017deal don’t Five-Year heard holding I’ve roth iras rule understand

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I’ve heard about a five-year holding rule for Roth IRAs, but I don’t understand it. What’s the deal?

1 Answer

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When it comes to withdrawing funds from a Roth IRA, there are actually two five-year rules: one for the money you convert and one for the earnings you make on your investments.