Federal rules for readers across the U.S.
Roth IRA 5-Year Rule Explained
By Christian Brinkley. Reviewed October 8, 2026.
Educational information only, not personalized tax, legal, or investment advice. Christian is a licensed insurance agent (NC Life & Health), not a CPA or registered investment adviser. Discuss your own situation with a qualified professional.
Clock one: contributions
Every Roth IRA has a five-year clock that starts with your first contribution to any Roth IRA. Once it is satisfied and you are 59 and a half, earnings come out tax-free. Disability and a first-home purchase also count as qualifying reasons. This clock never resets, no matter how many accounts you open.
Clock two: conversions
Each Roth conversion starts its own separate five-year clock. Withdrawing converted principal within five years triggers the 10% penalty if you are under 59 and a half. The tax was already paid at conversion, so only the penalty is at stake. Track each conversion year carefully.
How the clocks interact
Contributions always come out first, then conversions, then earnings. That ordering means your own contributions are the easiest money to reach. Conversions sit in the middle with their own clocks. Earnings are last in line and face the strictest test.
| Topic | How they compare |
|---|---|
| Your contributions | Tax-free and penalty-free anytime |
| Converted amounts | Penalty may apply if under 59.5 |
| Earnings | Tax plus penalty unless an exception applies |
Your records checklist
- Note the tax year of your very first Roth IRA contribution.
- Log the year of every Roth conversion separately.
- Withdraw contributions first if you need cash before 59 and a half.
- Wait for both the clock and a qualifying reason before touching earnings.
Common questions
- Does opening a second Roth IRA restart the clock?
- No. The five-year clock for earnings starts with your first contribution to any Roth IRA. A new account inherits the old clock. Conversions are the exception: each one starts its own clock.
- What counts as a qualifying reason for earnings?
- Reaching 59 and a half is the most common one. Disability and a first-time home purchase up to $10,000 also qualify. Without a qualifying reason, earnings withdrawn early face tax and usually a penalty.
Sources and current instructions
Check the tax year and any later updates before acting. These are the primary sources used for this guide.