What do do about the 5 year rule in Roth IRAs

❓Interested in Learning More? 📚 Download my FREE Book: https://lp.craigwear.com/free-book ☎️ Want to Talk with Someone About Your Roth Conversion Strategy? Schedule a Call! https://craigwear.typeform.com/survey... What to Do About the 5-Year Rule in Roth IRAs In this video, Craig Wear dives into the intricacies of the five-year rule for Roth IRAs, offering tips to help you maximize your tax savings. 🧠💰 He breaks down how the five-year rule applies differently to contributions and conversions, impacting when you can make tax-free withdrawals. Craig clarifies that while contributions to a Roth IRA can be withdrawn tax-free at any time, conversions start their own five-year clock. ⏳ To make the most of your Roth IRA, Craig suggests limiting new contributions and instead focusing on aggressive, accelerated conversions of existing IRA funds. This strategy not only helps reduce your IRA balance but also helps you avoid required minimum distributions (RMDs) in the future. Takeaways: Understand that the five-year rule for Roth IRAs applies to both contributions and conversions. 📆📊 Contributions can be withdrawn tax-free at any time, but conversions have a separate five-year clock. ⏳💼 Limiting new contributions and focusing on accelerated conversions can lower your IRA balance and help you avoid future RMDs. 🛡️💡 Keywords: Roth IRA, five-year rule, contributions, conversions, tax-free withdrawals, tax savings, accelerated conversions, existing IRA money, required minimum distributions Sound Bites: "Clearing up confusion around the five-year rule for Roth IRAs." 🧠💡 "The clock starts on contributions on January 1st of the year." 🕒📅 "Roth conversions have their own five-year clock." ⏳🔄 📚Chapters: 00:00 Understanding the Five-Year Rule for Roth IRAs 02:21 Roth Conversions and the Five-Year Rule 03:43 Immediate Access to Converted Amounts 04:38 Withdrawals of Contributions and Penalties 06:05 Maximizing Tax Savings with Accelerated Conversions 07:03 Strategic Roth IRA Planning to Avoid RMDs Fun words: Roth conversions, pre-tax money, tax implications, Roth IRA, tax-free growth, required minimum distributions, tax consequences, large IRAs, tax burden, working years, risks, inherited IRAs, 10-year rule, Secure Act 1.0, distribution requirements, designated beneficiaries, tax strategy, estate planning #rothconversion #retirementplanning #finance