Retirement · IRC §408A · IRS Pub 590-B
Roth 5-Year Rule Calculator
The Roth 5-year rules aren't one clock — they're two. This tool runs your withdrawal through the §408A(d)(4) waterfall so you see exactly what's tax-free, what's taxable, and what triggers the 10% penalty.
Two clocks, not one. Clock 1 (qualified-distribution) starts when you first put anything into any Roth IRA. Clock 2 is per-conversion — each conversion has its own 5-year timer. Most online content conflates them. This tool doesn't.
Conversions
The withdrawal
Clock 1 — qualified-distribution clock
Met
Started Jan 1, 2020 · ends Jan 1, 2025
Clock 2 — per-conversion clocks
- 2023 · $40,000ends Jan 1, 2028
Withdrawal waterfall (§408A(d)(4) ordering)
| Layer | Amount | Tax | Penalty | Reason |
|---|---|---|---|---|
| 1. Contributions | $30,000 | $0 | $0 | always tax-free & penalty-free |
| 2.1 Conversion (2023) | $20,000 | $0 | $2,000 | clock 2 unmet (ends Jan 1 2028), under 59½ — 10% penalty on the whole amount (all taxable when converted) |
| 3. Earnings | $0 | $0 | $0 | no earnings drawn |
Total federal tax
$0
Total 10% penalty
$2,000
Honesty notes. Rolling a Roth 401(k) into a Roth IRA does not carry the plan's years over — the IRA's own clock 1 governs. After clock 1 is met, a disability or first-home ($10,000 lifetime) withdrawal is a qualified distribution — no tax, no penalty. Before clock 1 is met, those exceptions remove the 10% only. The 10% on a conversion reaches only the part that was taxable when you converted. All your Roth IRAs are one pot; clocks do not restart per account.
Related resources
Sources & References
Primary references used for this content
Distributions from Individual Retirement Arrangements (IRAs)
Ordering rules, both 5-year clocks, and the qualified-distribution definition.
View on irs.gov
Roth IRAs — statutory text
The §408A(d)(4) ordering rules and §408A(d)(2) qualified-distribution definition.
View on law.cornell.edu
Additional Tax on Early Distributions From Traditional and Roth IRAs
The 10% early-withdrawal penalty and its exceptions.
View on irs.gov
✓3 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.