🚨 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 It's important to note that contributions can be withdrawn at any time, tax- and penalty-free.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 t...
Timothy Sumer is a philanthropist and motivational speaker empowering young entrepreneurs across the nation. He speaks on starting new businesses and the importance of branding in the digital age. Timothy Sumer has a BA in Accounting from NYU and a Masters in Information Technology from MIT. Tim enjoys traveling around the globe, driving exotic sports cars, molecular gastronomy, exploring new cultures, and keeping on top of the latest technology trends. Hope you enjoy Timothy Sumer's page :)