Episode 83: Roth 5-Year Rule


Taxes in retirement seem can be extremely complicated! Today Scott and Angela break down the 5-year rule regarding ROTH accounts…most people aren’t aware of.

Key takeaways:
• What is the 5-year rule?
• What does it mean and why does it matter?
• Even more trip wires?

*Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

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