How Roth IRA Withdrawal Order Can Save You Thousands

When you withdraw money from a Roth IRA, the IRS has strict rules about which dollars come out first: contributions, then conversions, then earnings. Many retirees accidentally trigger taxes or penalties by withdrawing in the wrong order. In this episode, Lucas and Luna walk through the five-year aging rules for conversions, the 'ordering rules' buried in IRS Publication 590-B, and a concrete example showing how a retiree with a $200,000 Roth IRA could owe $12,000 in unnecessary penalties by taking earnings before the five-year clock runs. They also discuss why the SECURE Act 2.0 changed the rules for employer match Roth contributions and how to track your Roth basis properly. #RothIRA #RetirementPlanning #WithdrawalRules #TaxStrategy #IRS #FiveYearRule #RothConversion #SECUREAct2.0 #RetirementIncome #TaxFreeGrowth #FiduciaryAdvice #BasisTracking #Publication590B #PenaltyAvoidance #Finance #FexingoBusiness #BusinessPodcast #PersonalFinance Keep every episode free: buymeacoffee.com/fexingo