Why A Roth IRA Rollover Requires More Tracking Than A Regular Roth IRA Contribution
Most individuals who own a Roth IRA are aware that the account must be open for a certain number of years before earnings can be withdrawn without penalty. Many Roth IRA owners may assume that the same rule applies to funds rolled over into the account. In fact, rollovers to a Roth IRA are subject to slightly different requirements than regular contributions are.
The regulations imposed on IRA withdrawals are intended to discourage the early use of retirement funds.