CORRECTION to my Answer to Charlie's Question on the ROTH 5-Year Rule

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Roger Whitney・

almost 2 years ago

801 views

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4 min⚡️4 min 50 sec3 min 52 sec3 min 13 sec2 min 35 sec2 min 16 sec1 min 56 sec1 min 33 sec

1.2×

4 min⚡️4 min 50 sec3 min 52 sec3 min 13 sec2 min 35 sec2 min 16 sec1 min 56 sec1 min 33 sec

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7 Comments

Glenn Harm

June 8, 2023

Growing up in MI, I agree about your sentiment against OSU. :)

Anonymous

June 10, 2023

Thank you, Roger! I understand that I have to open up a Roth and put some money in it so it will be there for 5 years. But what if I'm still working and my income is too high to qualify for a Roth? I'm 53, so it would make sense for me to open that Roth now so I can use it at 58 if I retire then. But how can I start that Roth if I make too much to contribute to a Roth?

Anonymous

June 11, 2023

Back door Roth, if you don’t have money in traditional accounts outside of employer accounts. Search Roger’s archives or the internet to get a good explanation,

Anonymous

June 10, 2023

Thank you Roger! 🙏

Steve Brown

June 10, 2023

Thank you Roger! 🙏I've always found the application of the 5 year rule on Roth IRAs to be a tad confusing. Fortunately, I'm not in a position to worry too much about it, but things could change, so thanks.

Anonymous

June 10, 2023

Thank you Roger! 🙏

Anonymous

June 11, 2023

Good point about it being taxes on the growth, not just a penalty!! Could be a much bigger hit than a 10% penalty, plus put you into a different IRMA bracket, etc. Definitely something to avoid!

Teresa Flynn

June 12, 2023

Thanks so much for creating a video that clarifies the question and the correct response. What I love about your approach to retirement planning is no one is going to get it 100% correct every time and you are STRONG enough to admit an error and rectify the misunderstanding. Keep doing what you are doing Roger and Thank you!