Roth IRA Withdrawal and 5-Year Rules. Avoid potential penalties and taxes in retirement!

Great info. I have 800k in ira. 300k cash. 100k roth. I do not want to keep records... min I plan to use wife and my ss 50k and just withdraw ira 50k per year to get some dollars out of ira before rmd's. Trying to keep low tax bracket. Ie 12%. Or should I take 100k from ira and bank the 50k to lower ira? All accounts are in fixed 5%. Because I want nothing in the market? Thanks

Thanks for making this video, it is very helpful helps me clarify my doubts. I have a question and was hoping if you could help resolve it to make my understanding more clear.

I understand that Roth Conversions have it's own 5 year period but does a rollover also count as conversion? I am thinking that only a transfer from non-Roth account to Roth IRA is counted as conversion and not the case where money is moved from Roth 401K to Roth IRA.

Let me ask my question with example below.

Jan 2005 : I have a Roth 401K account opened since Jan 2000. No Roth IRA yet. It has total value of 100K which is combination of 70K as contributions and 30K as earnings.

Jan 2005 : I rollover 10K to a new Roth IRA. I am guessing this would have 7K as contribution money and 3K as earnings money.
- Question : Does this rollover trigger a Roth IRA 5 year timer?
- Question : Is this 5 year timer specific to only this rollover amount and any subsequent rollover from Roth 401k will have its own 5 year timer? Or does it apply across all future and current Roth IRA accounts?
- Question : Do I have to wait for 5 years even to withdraw the 7K contribution portion from the rollover which I have already paid taxes on while it was in my Roth 401K account?
- Question : Does it help if I simply do a one time rollover of $100 from Roth 401K to a brand new Roth IRA (1st Roth IRA ever for me) at very beginning. Then I can wait until retirement and simply transfer all my money from Roth 401K to the Roth IRA opened years back and satisfy the 5 year requirement immediately as the Roth IRA which was opened years back is already more than 5 years older?

Would really appreciate if you could help me get some clarity here. Thank you in advance :)

I am still confused about your information. If a person is over 59.5 and have Roth 401 K only for 2 years but has Roth IRA for more than 5 years. If he rollover his Roth 401K to his Roth IRA, after 1 year later, will he qualified to get his converted Roth 401K money and earning out from this Roth IRA account?

So the 5 yr delay to take distributions from roth conversions makes them essentially useless unless one is very long lived or has completed a Roth conversion several years before age 59.5. Also, since taking distributions to make a roth conversion from qualified retirement plans b4 age 59.5 is subject to a 10% penalty it doesn't make sense in any case. For us folks in our mid sixties roth conversions seem pointless if income is fairly high and with inflation. High incomes become meaningless as the IRS rules confiscate 42% or more or marginal dollars over the baseline income tax brackets. Seems like for the average successful professional or skilled worker/tradesman the IRS has everyone's $$ coming and going.