There are 2 different 5 year rules.
Yes, the general 5 year clock for all Roth accounts only applies once.
- As a technical note, IRA means individual retirement arrangement. You only have one arrangement, even if you have accounts at more than one broker. You only need to satisfy the general clock once for your individual retirement arrangement.
Each conversion has a separate 5 year clock that must be met even if the general 5 year clock is satisfied. However, the penalty for removing converted funds is only the 10% penalty for early withdrawal, and that never applies over age 59-1/2, even if the clock is not satisfied.
- Technical note: When you do a traditional to IRA conversion, you pay the income tax on the converted amount. If you could withdraw the converted amount without any penalty, then someone under age 59-1/2 could do a Roth conversion and immediate withdrawal, and avoid the 10% penalty for withdrawing directly from the traditional IRA. This is why there is a separate 5 year clock on each conversion, to block people under age 59-1/2 from dodging the penalty. That is also why the penalty does not apply over age 59-1/2 even if the 5 year clock is not satisfied.
