Confused by the Roth 5-year rule? If so, you’re not alone. The Roth IRA can feel like a financial enigma, and the 5-year rule is often misunderstood, leading to hesitation and missed opportunities. But today, we’re breaking down the mystery.
Listen in as your certified retirement counselor Mark Struthers explains the different variations of the 5-year rule, when each applies, and why timing is key—whether you’re planning a Roth conversion, eyeing early retirement, or mapping out a tax strategy. You’ll learn how Roth IRAs grow tax-deferred, when distributions become tax-free, and why even starting with just $10 in a Roth can have major long-term benefits.
What You’ll Learn:
- What to know about the 5-year rule for Roth IRAs vs. Roth conversions.
- Why contributions, conversions, and earnings are treated differently.
- How to access your Roth funds penalty-free.
- The power of starting a Roth IRA—even with just $10.
- Roth ladders and how they can support early retirement.
- The unintended tax consequences of large conversions.
- What to consider when planning for tax changes, Medicare surcharges, and college aid.
- Why Roths are like “tax insurance” for your future.
Ideas Worth Sharing:
- “In most cases, you need to pay taxes for the Roth conversions—not from the Roth itself.” – Mark Struthers
- “It’s better to plan and make an educated guess—and certainly know what possible outcomes are going be—than do nothing.” – Mark Struthers
- “Roths are a lot like cowbells, or Will Ferrell and the cowbell. Most people could use a little more cowbell in their life.” – Mark Struthers
Resources:
- Work with Mark Struthers
- Subscribe to our Healthy & Wealthy newsletter and get our 2025 Tax Cheat Sheet: Subscribe here
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Disclosure:
Investment advisory services are offered through Sona Financial LLC (DBA Sona Wealth Advisors, Sona Wealth, Sona Wealth Management), an investment adviser registered in the state of MN. Sona Financial only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure and document.
This video or article is for educational purposes only and is not exhaustive. Nothing discussed during this show/episode should be viewed as investment advice. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but is intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax, or financial advice. Please consult a legal, tax, or financial professional for information specific to your individual situation.
This content has not been reviewed by FINRA.