Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Most people know Roth IRAs are tax free.

27 Aug 2025 · 1 min

Watch on YouTube

0:52

A short YouTube video by Craig Wear, CFP® explaining the Roth IRA five-year rule and related withdrawal rules. Key points: to withdraw earnings tax-free a Roth IRA must be open at least five years and the owner must be age 59½ or older; contributions can be withdrawn anytime penalty-free; conversions have their own five-year clock; inherited Roth IRAs follow similar timing rules; conversions done after age 59½ can be withdrawn without penalty or tax.

Questions this video answers

59 and a half years old

At least five years

Yes — contributions can be withdrawn anytime without penalty

Yes — a conversion from a traditional IRA to a Roth has its own five-year clock

Yes — the same rule applies to inherited Roth IRAs

Chapters

So what is the five year rule? Why does it matter? So to withdraw earnings tax free your Roth IRA has to be open for at least five years and you must be 59 and a half or older. You can take out your contributions anytime you want to without any penalty or anything. And if you convert from a traditional IRA that conversion also has its own five year clock. The same rule applies to inherited Roth IRAs as well. But look, don't get penalized, know what the timelines are before you withdraw. And don't be confused because there are actually two different five year rules. I've just gone through the that applies to a lot of people but for folks that are already 59 and a half years old you can withdraw 100% of the amount that you convert to a Roth IRA with absolutely no penalty and no taxes. So check into those rules as well because if you're over 59 and a half it's a great way to really begin doing some massive Roth conversions.