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Ask Millionacres: How Does the Roth IRA "Five-Year Rule" Work?


[Updated: May 20, 2021 ] May 25, 2020 by Matt Frankel, CFP

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Q: A recent article of yours stated that a REIT could be bought within a Roth IRA and if the IRA has been open for at least five years and you're at least age 59 1/2, you can withdraw from the account tax-free. Is the five years from the time the investment was bought, or five years from Roth IRA open date? For example, if I've had a Roth IRA for 20 years and open a REIT, after three years, can I receive dividends from the REIT tax free?" -- Richard

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