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Originally Posted by Plinker
Don’t forget, you will not be able to access the converted ROTH money for a period between 4 years plus one day to 5 years, depending on what date you do the conversion. Regardless of the date of your conversion, the IRS starts counting the 5 year wait on January 1st of the year of conversion. So, a conversion on July 1st has a 4 1/2 year wait while a December 31st conversion only waits 4 years plus one day. Consider waiting until mid-December to convert. Each conversion starts a new wait period.
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There is a work around for that . From Investopedia
" A note for multiple account owners: The five-year clock starts with your first contribution to any Roth IRA—not necessarily the one from which you’re withdrawing funds. Once you satisfy the five-year requirement for one Roth IRA, you’ve fulfilled it for all of them.
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Internal Revenue Service. "Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)," Pages 31-32.
Any subsequent Roth IRA is considered held for five years. Rollovers from one Roth IRA to another don't reset the five-year clock.
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