Personal Investments • 5 year rule for Roth IRA transfer?

No the clock does not restart. From an IRS perspective you have one Roth regardless of how many individual Roth accounts exist. It started the year the first one was funded.

Cheers

So if I opened a new Roth at Vanguard and left the first one at Fidelity, then the new Vanguard account is not subject to the 5 year rule on withdrawal of earnings?

That’s correct because all of your individual Roths regardless of where they are held are viewed by the IRS as being one when it comes to these rules.

Cheers

Statistics: Posted by oakbluffs — Sat Aug 24, 2024 9:36 pm — Replies 6 — Views 398