How the 5 Year Rule on Roth IRA Conversions Works

Episode 111 of Retirement Planning with Fexingo dives into the often-overlooked 5-year rule on Roth IRA conversions. Lucas and Luna explain why a converted Roth IRA has two separate 5-year clocks — one for the conversion itself and one for earnings — and how misreading the rule can trigger surprise taxes. Using a concrete example of a retiree converting $100,000 in 2026, they walk through the timing rules, the order-of-withdrawal exceptions, and a practical strategy to avoid penalties while accessing funds early. Perfect for anyone managing a Roth conversion ladder or considering a backdoor Roth. #RothIRA #RothConversion #5YearRule #RetirementPlanning #TaxStrategy #IRA #BackdoorRoth #RothConversionLadder #WithdrawalRules #SEPP #TaxFreeIncome #Finance #Investing #Retirement #FexingoBusiness #BusinessPodcast #LucasAndLuna #Fexingo Keep every episode free: buymeacoffee.com/fexingo