According to Plan: Roth Revealed - 5 Year Rule Rundown

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)

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