When does the 5-year period begin for tax-free earnings on distributions?
The 5-year period begins on the date of the participant’s first Roth contribution to the plan. If a participant makes a Roth contribution within calendar year 2006 (even if the first contribution date is December 31, 2006), then the 5-year period is considered satisfied as of January 1, 2011. A Roth contribution in a subsequent year does not start a new 5-year period.
