What makes a Roth IRA distribution qualified?
The five-tax-year period starts with the first tax year for which a contribution was made to a Roth IRA established for your benefit. After that period, the distribution must be made at age 59½ or later, because of qualifying disability, after death to a beneficiary or estate, or for qualifying first-home expenses within the $10,000 lifetime limit. IRS Publication 590-B explains the conditions.
Is this the same as the conversion five-year rule?
No. A separate five-year rule can affect the additional tax on early withdrawals of amounts previously taxed at conversion. Nonqualified Roth withdrawals also follow ordering rules, with regular contributions generally coming out first. Neither “nonqualified” nor “under five years” automatically means the entire withdrawal is taxed.
How does qualification show up in practice?
Hypothetically, someone aged 62 whose first Roth IRA contribution was for tax year 2021 would meet the age and five-tax-year tests for a distribution in 2026. Confirm the account history and reporting with the custodian and a qualified tax adviser before withdrawing metal.