If you move ROTH IRA – 5 year time
Can anyone tell me if I move my current Roth account from one entity to another does that mean the 5 year time line for a withdrawal starts over?
Can anyone tell me if I move my current Roth account from one entity to another does that mean the 5 year time line for a withdrawal starts over?
Permalink Submitted by Alan - IRA critic on Wed, 2019-07-10 15:33
No, it does not start over even if you close your Roth IRA for a decade and then start contributions after that. The 5 year holding period starts with the year of your first legal Roth contribution. In other words, it does not start with an excess contribution. Also, note that you can withdraw your regular Roth contributions anytime without tax, penalty, or any holding period.