James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors.

Through a listener question from Manfred, a retiree contemplating a $50,000 conversion from a 401k to a Roth account, James dissects the crucial fiveyear holding period and the order in which contributions, conversions, and earnings are treated during withdrawals.

James also provides clarity on distribution rules, exceptions, and strategic considerations, offering a comprehensive guide to navigating the complexities of Roth IRAs for optimal retirement planning.

Questions Answered:
How does the timing of subsequent conversions impact the application of the fiveyear rule?
In Roth IRA withdrawals, what is the specific order of operations, and what implications does that have?

PDF Cheatsheet: https://drive.google.com/file/d/1velb...
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⏱Timestamps:⏱
0:00 Manfred’s question
1:39 Get the cheatsheet
2:37 Understanding source nuances
7:01 The fiveyear rule
8:37 IRS’s order of operations
11:59 Exceptions to the rule
13:49 Only a small impediment
16:14 Back to Manfred’s example

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