Five-year rule


Q. I have read conflicting information concerning VCP to ROTH conversion and the five-year rule.  Based on this information, there may be a difference between the funds converted and the interest income generated in the ROTH account. Can you explain how the five-year rule applies in each case?

A. The five-year waiting period for the converted funds and the interest they produce will begin on Jan. 1 of the year of the conversion. Check page 71 of IRS Publication 590 for an explanation of the rules. You should consult a qualified tax adviser regarding the rules and how they apply to your particular case.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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