The Roth 5-year rule is really two rules. One clock governs whether your earnings are tax-free; a separate clock governs each conversion you've made. Enter your dates to see exactly where each stands.
| Scenario | Account 5-Yr Met? | Age 59½? | Earnings Tax-Free? |
|---|---|---|---|
| First contributed 2021, age 45 (now 2026) | Yes (Jan 1, 2026) | No | No — age not met |
| First contributed 2021, age 62 (now 2026) | Yes | Yes | Yes — qualified distribution |
| First contributed 2022, age 62 (now 2026) | No (Jan 1, 2027) | Yes | No — account clock not met |
| Converted 2023, want converted principal in 2026 | — | — | 10% penalty on conversion until Jan 1, 2028 |
| Withdraw contributions (made years ago) | — | — | Always tax- and penalty-free |
A distribution is "qualified" (earnings tax-free) only when the account has met its 5-taxable-year period AND the owner is 59½, disabled, deceased, or a first-time homebuyer ($10,000 lifetime).
People say "the Roth 5-year rule" as if there is one rule. There are two distinct clocks, and confusing them causes real tax surprises.
This clock starts on January 1 of the first year you contribute to any Roth IRA — not the year you open the account, and not your 59½ birthday. It runs until January 1 of the fifth year. Once you have owned a Roth IRA for 5 taxable years and you are 59½ (or meet another qualifying event), every dollar in the account — contributions and earnings — comes out tax-free. The clock is per-person, not per-account: opening a second Roth IRA later does not restart it.
Every Roth conversion carries its own 5-year clock. If you convert a traditional IRA to Roth and then withdraw the converted amount within 5 years and you are under 59½, you owe a 10% penalty on the amount converted (the taxable portion), even though you already paid tax on it at conversion. Each conversion year starts a new clock, so a 2026 conversion is penalty-free on January 1, 2031.
Your direct contributions to a Roth IRA can always be withdrawn tax- and penalty-free, at any time, for any reason, regardless of either clock. Ordering rules treat withdrawals as coming from contributions first, then conversions, then earnings.
To get earnings out tax-free you must satisfy both the account's 5-year clock and a qualifying event. To get converted principal out penalty-free under 59½ you must satisfy that specific conversion's 5-year clock. A conversion made in a year when you are already over 59½ has no penalty clock at all.
The 5-taxable-year period is measured in tax years, not 60-month blocks. Because it begins on January 1 of your first contribution year, a contribution made on December 31, 2021 and one made on January 1, 2021 both start the same clock — and it ends on January 1, 2026, not five years after the contribution date. That quirk means a late-year contribution effectively gets a shorter wait to reach qualified status, a small but real planning advantage.
The clock is also per-person, not per-account. If you opened a Roth IRA at 25 and later opened a second one at 40, both share the original start date. This is why rolling a Roth 401(k) into a Roth IRA does not restart the clock for the pre-existing balance — but each conversion component still carries its own separate 5-year hold.
When you convert a traditional IRA to a Roth, you pay income tax on the converted amount in the conversion year. Many people assume that once the tax is paid, the money is theirs to touch. Not so. If you are under 59½ and withdraw any of the converted principal within five years of that conversion, the IRS charges a 10% early-distribution penalty on the taxable portion converted — even though tax was already paid.
The penalty applies conversion-by-conversion under first-in-first-out ordering. A useful strategy for early retirees is to convert several years' worth of living expenses in one year and simply leave them for five years, using taxable-brokerage assets in the meantime. After 59½ the conversion clock no longer matters, though the account's 5-year clock still governs tax-free earnings.
⚠️ Important: This calculator illustrates the mechanics of the Roth 5-year rules for educational purposes. It does not model your specific ordering of contributions, conversions, and earnings, nor state tax treatment. Withdrawal rules, exceptions, and the first-time-homebuyer $10,000 exception are fact-specific. Consult a tax professional before making withdrawals.