Avoid Roth IRA penalties with one rule.
To withdraw earnings tax-free,
your Roth must be open for five years
and you must be 59.5 or older.
Contributions?
You can pull those anytime, no penalty, no tax.
Conversions?
They start their own five-year clock.
Same rules apply to inherited Roth IRAs too.
And here's where most people get tripped up:
there are actually two different five-year rules.
If you're already over 59.5,
you can withdraw 100 percent of your converted amount
with no penalty and no tax.
Know the timelines before you move money.
Because one mistake
can turn tax-free into tax pain.
