Roth IRA 5-Year Rules: How to Withdraw Money With No Taxes or Penalties - 404
Your Money, Your Wealth
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The Five-Year Clock
The origin of the five-year clock is that when you set up your first Roth IRA, it has to season for at least five years before you withdraw the income or growth. Once you get to 59 and 1 half, that rule doesn't apply because you can pull principal out on a conversion at any time they want. You still have to wait the five years for growth and income unless you already had a Roth. The IRS came in and said, if you convert money to a Roth IRA and then pull it out the next day, well, that's a way to avoid the 10% penalty.
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