In the latest episode of Amplified Wealth’s According to Plan, hosts Kate Fishbein, CFP® and Tom Farrell, CFP®, AEP® dive into one of the most misunderstood topics in retirement planning: Roth IRA distributions—and the two critical five-year rules that can trip up even savvy investors.
Episode Highlights:
📆 The First Five-Year Rule (Qualified Distributions): Learn why it’s not enough to be over 59½—you also need to have held your Roth for five years to avoid taxes on earnings.
🔁 The Second Five-Year Rule (Conversions): Converting funds from a Traditional IRA? Each conversion has its own five-year clock—and missteps here could cost you in penalties.
💡 FIFO and Funding Tips: Discover how Roth distributions are ordered (hint: contributions come out first), and why starting your Roth clock early—even with a small amount—can be a smart move.
📊 Real-World Examples & Case Studies: Kate and Tom walk through multiple detailed case studies to help listeners understand how the rules apply in real life.
🎧 Tune in now to understand how to get the most out of your Roth IRA—and avoid unexpected taxes or penalties.
Timestamps:
Introduction (0:00)
Distribution Order & Rules: (03:10)
5-Year Distribution Rule Explained: (05:27)
5-Year Rule for Conversions (15:41)
Example - Contributions: (21:47)
Example - Earnings (24:23)
Example - Conversion (26:20)
Example - Conversion & Earnings (30:18)
Example - Qualified Distribution (33:48)
Wrap Up & Conclusion (36:45)
Nothing contained in this presentation should be construed as personalized advice, or solicitation to buy or sell any securities. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or non-investment related content in this Podcast will be profitable or suitable for your individual situation. Due to changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions. The opinions expressed in this podcast are those of the participants and may not reflect those of the firm. To the extent you have any questions regarding the applicability of anything discussed to your individual situation, you are encouraged to consult with the professional advisor of your choosing. The firm is neither a law firm, nor a certified public accounting firm, and no portion of this content should be construed as legal or accounting advice.
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