[Plinker]

Originally Posted by Laker14

Question about the waiting period: Say someone were to convert 100K/ year for 5 years.
In year 6 would the money converted in year 1 be available? I knew about the 5 year wait, but it isn't clear to me if every conversion freezes ALL of the money in the Roth IRA, or only the money converted over the last 5 year period.

EDIT: I knew I should have read ALL of the responses before I asked any specific questions, but I was afraid I'd forget to ask this one. Now that I've read ALL of the responses, I'm still unsure what the answer is, as there is disagreement. Which is, of course, why I will be doing further research and consulting a pro (fee based, not commission based), and reading the Craig Wear information (thanks for the tip!).

Yes, the first $100K plus any gains becomes available in 4-5 years. Each conversion starts a new 5 year clock which is determined by the date of the conversion. In effect, you could create a ladder of ROTH conversions just like a ladder of maturing CD’s. Please talk to a CFP or CPA to see if this is right for your circumstances.

[Plinker]

Originally Posted by Laker14

Question about the waiting period: Say someone were to convert 100K/ year for 5 years.
In year 6 would the money converted in year 1 be available? I knew about the 5 year wait, but it isn't clear to me if every conversion freezes ALL of the money in the Roth IRA, or only the money converted over the last 5 year period.

EDIT: I knew I should have read ALL of the responses before I asked any specific questions, but I was afraid I'd forget to ask this one. Now that I've read ALL of the responses, I'm still unsure what the answer is, as there is disagreement. Which is, of course, why I will be doing further research and consulting a pro (fee based, not commission based), and reading the Craig Wear information (thanks for the tip!).

Yes, the first $100K plus any gains becomes available in 4-5 years. Each conversion starts a new 5 year clock which is determined by the date of the conversion. In effect, you could create a ladder of ROTH conversions just like a ladder of maturing CD’s. Please talk to a CFP or CPA to see if this is right for your circumstances.