Timothy Sumer

🚨 Beware of the TWO Roth IRA 5-Year Rules! 🚨 Today, I wanted to shed some light on a crucial aspect of Roth IRAs that often goes unnoticed: the two 5-year rules. Understanding these rules is vital to ensure you maximize the benefits of your Roth IRA. Let's dive right into it! 1️⃣ The First 5-Year Rule: Qualified Distributions The first 5-year rule relates to the tax treatment of withdrawals from your Roth IRA. To qualify for tax-free distributions, two conditions must be met: ✅ The Roth IRA must be open for at least five tax years. ✅ You must be at least 59 ½ years old, disabled, or using the funds for a qualified first-time home purchase. If you satisfy both these conditions, any withdrawals you make from your Roth IRA are entirely tax-free! It's important to note that contributions can be withdrawn at any time, tax- and penalty-free. However, earnings on those contributions may be subject to taxes and penalties if not meeting the criteria. 2️⃣ The Second 5-Ye

"Hello! I drive a 2004 Subaru, drink sour beers and have a mutt. Lucky to live in Colorado. Love the show. I have an existing Roth - opened in 2020 - I will be 59.5 in 2026 so 5 year rule and 59.5 rule will be satisfied whenever I get around to using the funds after that time. No need for them for the foreseeable future. I have heard you mention that each conversion has its own 5 year clock even if I am over 59.5. Does that mean that if I want to convert stock in this down market now that I need to open a new Roth and if I want to do more next year, I need a third Roth, and so on? Or can, I just convert all of it into the existing Roth? If the answer is the former (separate Roths), can I consolidate them as they each hit the five year mark? Thank you, Jason." Download the 5 Year Rules for Roth Withdrawals: Listen to the entire Your Money, Your Wealth® podcast: Pure Financial Advisors, LLC is a fee-only Registered Investment Advisor providing comprehensive retir

I find one of the most confusing set of rules for retirees are the three 5 year Roth IRA rules. Often they each are referenced as 'The 5 Year Roth Rule' as if there is only one rule. However, there are three and each carries a different penalty for non-compliance. The worst part about these penalties is that they destroy wealth in your most valuable retirement account : Roth IRA. The confusion around these rules has been compounded in recent years. As recent as 2020, the estate planning rules have changed thus changing one of these rules. In this video, we simplify and explain these rules in layman's terms. We cover: 1. The 5-Year Contribution Rule 2. The 5-Year Conversion Rule 3. The 5-Year Inheritance Rule If you have any questions, please post them in the comments and we will make sure you get the answers you need. - - - - - - - - - - - - - - - - - - - - Always remember, "You Don't Need More Money; You Need a Better Plan" 🍿 Subscr

When talking about the Roth IRA there are many things people misunderstand. One of them is the 5 year rule that applies to the Roth IRA. Any contributions that you make to a Roth IRA are ALWAYS available for you to withdrawal at anytime. Even if you are not currently of retirement age you can still take out any contributions you make to a Roth IRA. The 5 year rule applies to those that are currently of retirement age only and affects the gains in the Roth. The other is the tax ramifications of withdrawals from a Roth IRA. Of course when you retire at 59.5 or older you can withdrawal any amount you want from your Roth IRA. If you withdrawal only contributions prior to that age then you are not required to pay any tax or penalty. It is only on the gains that you would pay a 10% penalty if you withdrew that early. We're an investing service that also helps you keep your dough straight. We'll manage your retirement investments and, using NestEgg we can help you with eve

When is the best time to withdraw from a Roth IRA? What age can you withdraw from a Roth IRA? Is there a penalty or tax for withdrawing early from a Roth IRA? What is the 5-year rule for a Roth IRA? Let's answer all these questions on Kyle Talks Money. ✅ Subscribe for More Videos: ***NOT FINANCIAL ADVICE. DO YOUR OWN RESEARCH*** ✅ Audible 30-Day Free Trial: (Affiliate) ✅ Follow on Instagram: ============================== ✅ Want to advertise your business, service, or product on screen in future episodes? Email me at (kyletalksmoney@gmail.com) Music on YouTube: The Thought of You by TrackTribe #RothIRA #RetirementInvesting #KyleTalksMoney Video Disclaimer: The content in this video and on this channel are for educational and entertainment purposes only. This video doesn't constitute financial advice of any kind. All opinions are my own. Affiliate Disclaimer: Some of the links may be affiliate links and that means if you make a purchase on those websites

Are Roth IRA Distributions Taxed? How To Avoid Penalties and Taxes on Roth IRA Distributions Can your Roth IRA become taxable? Are distributions from your Roth IRA taxed? If you don't follow two very specific rules, you could incur taxes and penalties on your Roth IRA distribution. That is what we are going to discuss in this weeks, Your Financial EKG™ blog. Roth IRA's are supposed to be completely tax free. "SUPPOSED TO BE" is the key statement in that sentence. Roth IRA's can become taxable and penalized if you don't follow two specific rules. Those rules are the "5 Year Rule" and the "Under 59.5" Rule. Let's dive into both: Roth IRA 5 Year Rule: The 5 Year rule says that you must wait 5 years before taking earnings out of your Roth IRA after your first contribution or conversion. You must also be over the age 59.5 to avoid penalties. SO, in plain english: to take investment earnings out of your Roth IRA without owing t