What is the “five-year rule” for Roth IRAs?

The five-year rule requires that your Roth IRA be open for at least five tax years before you can withdraw earnings tax-free. This clock starts on January 1 of the year you make your first contribution, not the exact date of the deposit.
This rule applies separately to conversions as well. If you convert funds from a traditional IRA to a Roth, each conversion has its own five-year clock for penalty-free withdrawals, even if you’re over 59½.