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Category: Finance
Satisfied Customers: 12009
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Is each contribution to a ROTH IRA subject to the

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Is each contribution to a ROTH IRA subject to the 591/2 rule and not be withdrawn tax-free until 5 years has passed since the date of contribution, OR does only initial contribution have to qualify under the 5 year rule
Stated another way- after the initial contribution qualifies for 5 years after contribution (plus 59 1/2 also), do additional contributions to the same ROTH automatically qualify for withdrawals tax-free?

NPVAdvisor : Hi, please don't shoot the messenger here, but it IS. Based on the contribution (rather than when the INITIAL contribution was made or account opened)
NPVAdvisor : See this, from IRS: ( note the language re: contribution, rather than account age)
NPVAdvisor : What Are Qualified Distributions?A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, andThe payment or distribution is:Made on or after the date you reach age 59½,Made because you are disabled (defined earlier),Made to a beneficiary or to your estate after your death, orOne that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit).
NPVAdvisor : Here's an excellent resource:
NPVAdvisor : The five-year rule is somewhat confusing. There are actually two five-year rules for Roth IRAs, one for tax-free distributions and one for penalty-free distributions. The five-year rule for tax-free distributions starts when the first Roth IRA was established. That Roth IRA can be used to satisfy any additional Roth IRAs established. In your case, this rule was satisfied about 2007, five years after your first Roth contribution.Converted funds in a Roth IRA have their own five-year rule, if the account owner is under age 59 ½. You are over age 59 ½ so this rule does not apply to you. For those under 59 ½ with the converted amount held for less than 5 years, the distribution is subject to the 10% early distribution penalty. EACH CONVERSION HAS ITS OWN FIVE-YEAR HOLDING PERIOD – if you are under age 59 ½.
NPVAdvisor : ... From
NPVAdvisor : Hope this helpe
NPVAdvisor : Lane
NPVAdvisor : ... Let me know if you have questions
Lane and other Finance Specialists are ready to help you

Hi Stanley,

... Just checking back in here, as I never saw you come into the live chat.

Again, the answer is that each contribution has its own holding period, UNLESS you've e hit 59 and 1/2 and Brie sure to distinguish between conversions and contributions.

Let me know if you have further questions...


Thanks much Stanley,

Let me know if you need anything else.