Roth Five-Year Rule Calculator
§ 408A(d) · reviewed September 6, 2026
Checks which of the Roth IRA five-year clocks have run and what a withdrawal would cost you today. AboutLess
In plain words. Money in a Roth IRA comes out tax-free only after two waiting periods are over. One clock starts the first year you ever put money in any Roth IRA, and once it has run five years it is done for good. Each conversion into a Roth has its own five-year clock, and taking converted money out before it runs, if you are under 59½, costs a 10 percent penalty. Withdrawals come out in a fixed order: your own contributions first, then conversions, then earnings. This tool shows the clocks and prices a withdrawal layer by layer.
Why it matters. The two clocks are constantly confused, and the confusion goes both ways: people pay penalties they could have avoided, and people avoid withdrawals that would have cost nothing.
An example. At 57, a withdrawal of $80,000 from a Roth holding $30,000 of contributions, a $40,000 conversion made two years ago, and $20,000 of earnings: the contributions come out free, the conversion carries a $4,000 penalty because its clock has not run, and the $10,000 of earnings reached is taxed plus a $1,000 penalty.
Where it stops. It treats conversions as fully taxable when made, and covers only the age-based penalty exception. Inherited Roth IRAs and Roth 401(k)s, which have their own clocks, are not included. Everything it leaves out.
Your Roth IRA balance is $145,000. That is $40,000 of contributions, $80,000 of conversions, and $25,000 of earnings.
This starts the account's five-year clock. The clock is met from January 1, 2023, so it is already done.
Under 59½, a 10 percent penalty can apply to recent conversions and to earnings.
The money you put in yourself over the years. It always comes out first, with no tax and no penalty.
Everything the account has grown beyond what you put in and converted. It comes out last and is the only layer that can be taxed.
| Layer | Taken | Taxable | Penalty | Why |
|---|---|---|---|---|
| Contributions | $40,000 | $0 | $0 | Basis comes out first, tax-free and penalty-free, at any age. |
| 2020 conversion | $20,000 | $0 | $0 | Its five-year clock ran out in 2025: no tax, no penalty. |
| 2024 conversion | $0 | $0 | $0 | Not reached |
| Earnings | $0 | $0 | $0 | Not reached |
- Year the account's five-year clock is met
- Done
- Met since January 1, 2023
- Year the 2020 conversion's clock is met
- Done
- Met since January 1, 2025
- Year the 2024 conversion's clock is met
- 2029
- A penalty applies to it until then
This follows the federal Roth IRA rules on qualified withdrawals, the two five-year clocks, and the early withdrawal penalty. Both clocks run in tax years from January 1 of the year in question, and a contribution made by the April deadline counts for the prior year. Contributions here means what you put in directly, less anything already withdrawn. Each conversion is treated as fully taxable when made, so a conversion that included after-tax money is not modeled. It leaves out penalty exceptions other than age, inherited Roth IRAs, Roth 401(k) accounts, which keep a clock per plan, and state tax. Educational, not advice.
This is a simplified model, not your actual tax return or plan. It only knows what you type in, leaves out rules that may apply to you, and cannot weigh the other facts and trade-offs a real decision depends on. Before you act, talk with a professional who knows your whole situation.
Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.