Save for a Home or Save for Retirement? - 389
Your Money, Your Wealth
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The Five Year Clock
The five year clock has to do with the ten % penalty to some degree. So on a contribution, so you need to hold the account open for five years, or until 59 and a half, whichever is longer. They had to create another five year clock for people doing rothira conversions. You have to wait five years on every conversion you make, or until you turn 59 and ahalf. It's kind of like a back rule to have access to any of the cash,. And that was so that you wouldn't kind of skirt the rules and avoid the penalty. If i did a rothira conversion, g so i've already paid the tax on the conversion, right?
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