FangxiaL
Expert Alumni

Retirement tax questions

Each conversion has its own 5-year period. Each contribution's 5-year holding period starts from the initial contribution. In your case, any new Roth IRA contribution has met the 5-year holding period because you set up your Roth IRA account 10 years ago. But if you convert $5,000 from Traditional IRA to Roth IRA in 2021, the 5-year period started in 2021. That conversion will satisfy the 5-year holding period starting in 2026. 

 

@Serge

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