Talk of The Villages Florida - View Single Post - Interesting tidbit from the Fidelity Advisor
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Old 04-28-2023, 06:44 AM
Janie123 Janie123 is offline
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Quote:
Originally Posted by CoachKandSportsguy View Post
According to my Fidelity advisor,

The 5 year Roth IRA contribution - withdrawal clock starts when the account is opened,
even if there is no money in the account. . .

So for anyone who hasn't opened a ROTH ira for for conversions, and that is in your plans, open the ROTH IRA today and get the tax free penalty free clock starting now!

If others have differing opinions from their advisors or tax advisors, would love to hear them to be sure i am not relaying bad information. .

not a CFP guy
That also includes any Roth 401k money you would rollover to a Roth IRA, not just IRA conversions to the Roth account. It also does not have to do with individual conversions. Say year 1 you convert some money, then year 2, etc. the money converted in year 4 would have a waiting period until Jan 1 of the 5th year, not 5 years unless you open an new Roth account for each conversion which seems like a headache to manage but maybe there are reasons like beneficiaries upon death.???