Roth IRAs are the crown jewel of tax-advantaged investing. But there is a catch most people discover too late: the Roth IRA 5-year rule . Actually, there are two separate 5-year rules, and confusing them can cost you in taxes or penalties. This guide breaks down both rules clearly, with concrete examples and the 2026 numbers. If you are pursuing financial independence and planning to use a Roth Conversion Ladder in early retirement, understanding these rules is essential. What Is the Roth IRA 5-Year Rule? There are actually two distinct 5-year rules for Roth IRAs.…