Roth IRAs offer significant tax breaks: The money grows tax-free within the account, and you don't owe income taxes when you take it out. But, as with most tax-advantaged vehicles, there are strings attached.
Technically speaking, three different 5-year rules apply to Roth IRAs. Here's what you need to know about each.are individual retirement accounts that you fund with after-tax dollars. That means you don't get a tax deduction for contributions when you make them, but then you don't incur taxes on distributions when you take them .
You can withdraw sums equal to your contributions from a Roth IRA any time, tax- and penalty-free. But earnings are more complicated.
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