Under construction
5-Year Rule: Confusingly, there are multiple 5-Year IRA rules. We are concerned with the 5-Year rule on Roth Conversions (as that is what we are performing). The 5-Year rule states that the amount converted concerning each conversion is subject to the 10% early withdrawal penalty until the earlier of 59.5 years of age, or 5 years have passed since January 1st of the calendar year of each conversion.
One big note that undergirds all of this is that Roth Conversions are one of the exemptions to the 10% early withdrawal penalty applicable to distributions from Traditional IRAs prior to the person reaching age 59.5. So, none of these funds are subject to that penalty.
Roth Conversion Ladders
