Starting the Roth clock
If a Roth IRA is opened this year (2008 prior to 4/15/08) for 2007 contributions, does the 5 year clock begin as of Jan of 2007 or Jan of 2008? In other words, does the clock start based on the year that the account is physically opened or on the first designated year of contribution?
Thanks
Permalink Submitted by Edward Czapor on Sat, 2008-02-02 00:25
The 5 year holding period is based on the designated year of contribution, which would start as of Jan 1, 2007 for contributions made by 4/15/08.
Ed C.