Discover the tips and strategies that will help you achieve your retirement goals.

I'm your host, James Canole, and this is the podcast dedicated to helping you retire well.

It all starts right here on Ready for Retirement. for retirement.

Hi, everyone.

Welcome back to another episode of Ready for Retirement.

I'm your host, James Cannell.

And on today's episode, we're going to be talking about the five-year rule as it pertains to Roth IRA contributions or Roth conversions and just everything

you need to know going into that. And I think it's pretty straightforward, but it is important to

know all this since so many of the strategies that can save retirees so much money and taxes

incorporate Roth conversions. So it is very important to understand the five-year rule,

how it pertains to different types of

conversations or conversions so that you can make sure that you're implementing your

strategies most effectively. Now, this episode stems from a listener question from William. And

William says this. He says, you often cover the benefits of converting IRA balances to Roths.

And when I retire at 60, I plan on using this strategy during my low

income years to keep future taxes low. One thing you don't cover is a five-year rule before

withdrawing converted funds. Am I correct that converted Roth funds are subject to a five-year

weight, regardless of how long your regular Roth has been open? And if this is correct,

who manages the five-year withdrawal timing? Does my fund manager

keep track of this so I don't take money out early and have to pay penalties? It seems like it would

be difficult to track the timing and the balances because I also have mega backdoor conversions

to keep track of. William, thank you for your question. I think this is important to know.

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