Four Questions on the Roth Five-Year Rule
The Roth “five-year rule” typically refers to when you can take tax-free distributions of earnings from your Roth IRA, Roth 401(k), or other work-based Roth account. The rule states that you must wait five years after making your first contribution, and the distribution must take place after age 59½, when you become disabled, or when …
Read moreNovember 2019 Monthly Recap
Don’t Forget to Set Your Clocks Back! Daylight Savings Time ends this weekend, and it is time to “fall” back. Don’t forget to adjust your clocks back one hour on Nov. 3 at 2 a.m. and enjoy an extra hour of sleep! Is Now The Time to Refinance? If you have been considering …
Read moreRoth 5 Year Waiting Period Rules
There are some unclear and misunderstood rules that exist for ROTH IRA distributions. Qualified Distributions, which are both tax and penalty free, are distributions that occur 5 years after the first Roth IRA account is established, and the account holder is over age 59.5. For all other distributions, unless there is an exception, distributions may …
Read moreLeverage Your 401(k) to Build Roth Earnings
Many investors are familiar with the “Backdoor Roth” IRA, which is an indirect way to contribute to a Roth when they are not eligible to contribute directly due to income limitations on Roth investors. Even in those circumstances, some investors can take advantage of a lesser-known Roth contribution dubbed the “Mega Backdoor Roth.” It’s called …
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