Explainer
The Roth IRA 5-year rules: what retirees need to know about conversions
By Secure Retirement PlannerUpdated
If you are 59½ or older, only one of the two Roth IRA 5-year rules matters to you. Your earnings are tax-free once five tax years have passed since January 1 of the year you first put money into any Roth IRA. The money you converted can come out tax-free and penalty-free at any time. So if a medical bill or a market drop means you need cash, your converted dollars are there for you.
If you are under 59½, each conversion also starts its own 5-year clock. If you take converted money out before that clock ends, or before you turn 59½, you can owe a 10% penalty.
Both of your clocks start on January 1 of the year, not on the day you convert. A conversion on December 30, 2026 is treated as if it happened on January 1, 2026.
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The short version
- You have one account-wide 5-year clock. It starts with your first Roth IRA contribution or conversion and never restarts.
- Each of your conversions has its own 5-year clock, but it only matters if you're under 59½.
- Your money comes out of a Roth in a set order: contributions, then conversions (oldest first), then earnings.
- Over 59½, you can always take out your converted dollars tax-free and penalty-free. Only your earnings can be taxed before the account clock is met.
- Your years in a Roth 401(k) don't count toward your Roth IRA clock.
What are the Roth IRA 5-year rules for conversions?
It's easy to mix up the two clocks because both last five years. They protect different parts of your money and matter at different ages.
| Account clock | Conversion clock | |
|---|---|---|
| Starts | Jan 1 of the first year you contributed to or converted into any Roth IRA | Jan 1 of the year of each conversion |
| How many | One per person, for all your Roth IRAs | A separate one for every conversion |
| Protects | Earnings and growth | The taxable amount you converted |
| If you withdraw too early | Earnings are taxed as income (plus 10% if under 59½) | 10% penalty on the converted amount withdrawn |
| Matters after 59½? | Yes | No |
Does each Roth conversion have its own 5-year clock?
Yes, for the 10% penalty. The IRS says a separate 5-year period applies to each of your conversions. Your 2026 conversion and your 2027 conversion have different end dates.
No, for tax-free earnings. That clock is set once, by your first Roth IRA of any kind. Your new conversions don't restart it. Opening a new Roth IRA at a different firm doesn't restart it either.
| Conversion done any time in | Clock starts | Penalty-free from (if under 59½) |
|---|---|---|
| 2026 | January 1, 2026 | January 1, 2031 |
| 2027 | January 1, 2027 | January 1, 2032 |
| 2028 | January 1, 2028 | January 1, 2033 |
| 2029 | January 1, 2029 | January 1, 2034 |
Does the 5-year rule apply if I'm over 59½?
Only your account clock does, and only for earnings. Being 59½ or older is an exception to the 10% penalty, so your conversion clocks stop mattering.
Your money comes out in a set order, so your converted dollars come out before any earnings. You already paid tax on them, so they come out tax-free. Only if you dig into your earnings before the account clock is met would any of your withdrawal be taxable.
In practice, if you are over 59½ and leave your earnings alone in the first five years, the rule rarely costs you anything.
Never had a Roth IRA?
Your account clock hasn't started. Your first conversion or contribution to a Roth IRA, made by its deadline, starts it on January 1 of that year. For 2026, your conversion must be done by December 31, 2026. See 2026 conversion deadline.
In what order does money come out of a Roth IRA?
The IRS uses ordering rules for your withdrawals that aren't fully tax-free (qualified). You don't get to choose. All of your Roth IRAs are treated as one for this.
| Order | What comes out | Income tax? | 10% penalty if under 59½? |
|---|---|---|---|
| 1st | Your regular Roth contributions | No | No |
| 2nd | Converted money, oldest conversion first | No (already taxed) | Yes, if that conversion is under 5 years old |
| 3rd | Earnings | Yes, unless the account clock is met and you're 59½+ (or another qualifying reason applies) | Yes, unless an exception applies |
How does the 5-year rule work for a Roth 401(k) or an inherited Roth?
Roth 401(k): the years your money spent in a Roth 401(k), 403(b) or 457(b) don't count toward your Roth IRA clock. If you roll it into a Roth IRA, your Roth IRA's own start date is what counts. Having any Roth IRA open early helps you here.
Your heirs: a beneficiary never owes the 10% penalty, because death is an exception. Your heirs inherit your account clock. If it isn't met yet, earnings they withdraw before it ends can be taxable. Your converted and contributed dollars are still tax-free to them. Our guide Roth conversions for heirs covers the 10-year rule your heirs face.
Are there exceptions to the 10% penalty on early conversion withdrawals?
Yes. The usual IRA exceptions apply to you. Turning 59½ is the one you will most likely use. Others include disability, a terminal illness, and a series of substantially equal payments. A first home (up to $10,000) and medical bills above 7.5% of your adjusted gross income also count.
An exception removes your penalty only. It doesn't change the order your money comes out in. It also doesn't make your earnings tax-free before the account clock ends.
Example: two people converting $40,000 in 2026
Carol is 57, born in March 1969. Frank is 68. Neither has had a Roth IRA before. Each converts $40,000 in 2026, which starts both clocks on January 1, 2026.
Carol: if she took $10,000 of the converted money out in 2027, she'd owe no income tax on it. It was taxed when she converted. But she'd owe a 10% penalty of $1,000. She turns 59½ in September 2028, and from then on the converted money is penalty-free. Her earnings become fully tax-free on January 1, 2031, when both conditions are met.
Frank: he can take out up to $40,000 at any time with no tax and no penalty. Say the Roth grows to $46,000 and he empties it in 2029. The $6,000 of earnings would be taxable income, with no penalty. If he waits until January 1, 2031, all of it is tax-free.
If you are past 59½ like Frank, the 5-year rule mostly affects your earnings, not the money you converted. If you are younger like Carol, plan to leave your converted money alone until your clock ends or you reach 59½.
| Carol (57) | Frank (68) | |
|---|---|---|
| Converted in 2026 | $40,000 | $40,000 |
| Converted money penalty-free from | September 2028 (age 59½) | Right away |
| Penalty on $10,000 taken in 2027 | $1,000 | $0 |
| Earnings tax-free from | January 1, 2031 | January 1, 2031 |
Hypothetical example based on IRS Publication 590-B ordering rules. It assumes no earlier Roth IRA, no regular Roth contributions, and that no other penalty exception applies to Carol. Growth figures are made up for illustration.
Common questions
Does a Roth conversion restart the 5-year clock?
It starts a new clock for the 10% penalty, which only matters if you're under 59½. It doesn't restart your account clock for tax-free earnings. That clock is set once by your first Roth IRA.
If I'm 65, can I take out my converted money right away?
Yes. Over 59½, your converted dollars come out tax-free and penalty-free at any time. Only your earnings can be taxed before your account clock is met.
When does the 5-year clock start for a December 2026 conversion?
January 1, 2026. Every conversion counts from January 1 of the year it was made, so a December conversion gets almost a full year of credit.
Does my Roth 401(k) count toward the Roth IRA 5-year rule?
No. Time in a Roth 401(k) is tracked separately. After a rollover, the Roth IRA's own start date is what counts.
Do my heirs have to wait out the 5-year rule?
They never owe the 10% penalty. If your account clock isn't met when you die, earnings they take out before it ends can be taxable. Your converted and contributed money isn't.
Does opening a new Roth IRA reset the clock?
No. You have one account clock for all your Roth IRAs combined. It starts with the first one you ever funded.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Publication 590-B (2025), Distributions from IRAs, chapter 2 · Qualified distributions, separate 5-year period for each conversion, ordering rules, penalty exceptions. Read Nov 9, 2026.
- Treasury Regulation 1.408A-6 (Roth IRA distributions) · One account clock per owner that doesn't restart; 10% tax on conversions within 5 years and 72(t) exceptions. Read Nov 9, 2026.
- Treasury Regulation 1.408A-10 (designated Roth account rollovers) · Time in a designated Roth account doesn't count toward the Roth IRA clock. Read Nov 9, 2026.
- IRS Publication 590-A (2025), Contributions to IRAs · Conversion deadlines and methods. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.