I’ve had a Roth IRA for over 5 years. If I add funds to that account now, can I access those funds later this year without penalty? I meet the age requirement

[ColeenD3]

You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the Ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from Conversion and rollover contributions, on a first-in, first-out basis and finally from Earnings on contributions.

Please note: A qualified distribution from a Roth IRA is tax-free and penalty-free, provided that the five-year aging requirement has been satisfied and one of the following conditions is met:

• Over age 59½
• Death or disability
• Qualified first-time home purchase

A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies. For Roth IRAs, you can always remove post-tax penalty contributions (also known as "basis") from your Roth IRA without penalty.

[dmertz]

Yes.  If you are over age 59½, since you've met the 5-year requirement any distributions from your Roth IRA are tax and penalty free, including any new contributions.

About the only reason to contribute now if you know that you are going to take that same money out later in the same year would be on the assumption that there will be investment gains on this money in the interim that will be tax free as a result of being earned in a Roth IRA.  However, if you don't know if you will be needing the funds, it's a good place to put the money until you do need it.

[ColeenD3]

Each separate contribution has its own 5 year time clock. Please see Pub 590. Pub 590

[dmertz]

No, each separate contribution does NOT have a separate 5-year clock.  Read the first box on the chart.

Separate 5-year clocks only apply to Roth conversions, and only until the individual reaches age 59½.  The question is not asking about conversions and is not asking in regard to someone under age 59½.

[richardeclark]

Thanks to all for your responses. Upon reading your replies, I realized I misrepresented my circumstances. I’m AM talking about a conversion and not a normal contribution therefor It appears I’ll have to keep the 5 year waiting period in mind. The IRS flow chart is a bit misleading in that I can answer the first two questions with a yes which tells me my future withdrawals should be qualified but other things I’ve read tells me to be careful not to trigger the penalty for not waiting 5 years on potential gains

[dmertz]

You said, "I meet the age requirement."  If by that you meant that you are over age 59½, 5-year conversion clocks no longer apply since 5-year conversion clocks are only used to determine whether or not a 10% recapture penalty applies; there is no recapture or early-distribution penalty after age 59½.

Being age 59½ and having been more than 5 years since the beginning of the year for which you first made a Roth IRA contribution (which can also be a conversion contribution) means that any regular distribution is a qualified distribution, tax- and penalty-free.