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These states have the lowest public college tuition prices for residents.
However, “don’t just look at sticker cost,” cautioned Robert Franek, The Princeton Review’s editor-in-chief.
Scholarship aid can make even pricey private colleges surprisingly affordable.

If picking a college comes down to the financial bottom line, then an in-state public school can look like a particularly good deal.
“In-state tuition is half to two-thirds lower than out-of-state,” said higher education expert Mark Kantrowitz and author of “How to Appeal for More College Financial Aid.”

These days, that goes a long way as students and their families grow increasingly wary of the cost of a degree and hefty student loan debt that often comes with it.
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Tuition and fees plus room and board for students at four-year private colleges averaged $53,430 in the 2022-23 school year, according to the College Board. In comparison, in-state students at four-year public college paid $23,250, on average; for out-of-state students, it was $40,550
Over the last decade, tuition and fees actually fell by 1% at public four-year institutions while rising by 6% at private, four-year schools, the College Board found.

Top 10 states with lowest in-state tuition prices

For out-of-state students, Northern State University in South Dakota, Nichols State University in Louisiana and the University of Wyoming had the lowest prices nationwide at $20,000 or less.
“There is great currency in those numbers,” said Robert Franek, The Princeton Review’s editor-in-chief. However, such popular public colleges are increasingly difficult to get into, he added.
“These are schools that have great brand perception but they are also oversubscribed.”

Weighing public vs. private on tuition can be a mistake

“Never cross an expensive school off of your list of consideration based on sticker price alone,” Franek cautioned. “Many of those schools are giving out substantial scholarships — this is free money.”
When it comes to offering aid, private schools typically have more money to spend, Franek added.

At some private colleges, the average scholarship award is just over $50,000, The Princeton Review found, which brings the total out-of-pocket cost down to less than $20,000.

‘Don’t just look at sticker cost’

“Don’t just look at sticker cost,” Franek said. “There is a great deal of scholarship dollars out there and you can bring the cost down below what you would pay at a public college.”
Scholarship aid can also vary greatly by school and state, according to a separate Student Financial Aid Index by Scholaroo, which compared financial aid trends across the country.
For example, New Mexico, South Carolina and Tennessee awards the most amount of aid overall per undergraduate student while Arizona, Montana and Utah ranked among the states that provided least financial aid to their students.
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Ahead of Tuesday’s State of the Union address, seniors are sending letters to President Joe Biden urging him to tell Congress to protect Social Security and Medicare.
The future of the programs is part of the debate on how to handle the nation’s debt limit.
In the discussions, one point of fierce contention has emerged: whether commissions need to be established to identify changes to make to the programs.

President Joe Biden speaks about protecting Social Security, Medicare, and lowering prescription drug costs, during a visit to OB Johnson Park and Community Center, in Hallandale Beach, Florida, on Nov. 1, 2022.
Kevin Lamarque | Reuters

In the runup to Tuesday’s State of the Union address, AARP has encouraged its members, ages 50 and over, to send a message to President Joe Biden: “Urge Congress to keep their hands off our Social Security and Medicare.”
Members can sign a predrafted letter asking Biden to demand lawmakers strengthen Social Security and Medicare, and support caregivers, in the annual speech.

The response so far has been “overwhelming,” with about 82,000 letters sent in the past week, according to Bill Sweeney, senior vice president of government affairs at AARP.
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“This is a powerful message and our members are absolutely laser-focused on protecting Social Security and Medicare,” Sweeney said.

Social Security and the debt ceiling debate

The future of Social Security and Medicare have increasingly come up in the debate around the debt ceiling.
In January the U.S. hit the debt limit, which represents the total amount the government can borrow to meet its obligations, and since then it has turned to “extraordinary measures” to continue making payments.

It is up to Congress to agree to raise or eliminate the debt ceiling to prevent an unprecedented default on the country’s debt.
As part of the negotiations, lawmakers may look to cut costs. Both Biden and House Speaker Kevin McCarthy have vowed to keep changes to Social Security and Medicare off the table.

However, House Republicans’ budget plan calls for cuts to the programs, such as raising the retirement age or changing the way the annual Social Security cost-of-living adjustment is calculated.
Those changes may not be included in the debt ceiling negotiations.
But efforts to create commissions to examine the programs’ futures may move forward as part of a deal, which has set off vigorous debate ahead of the State of the Union.
“The American people want more jobs and lower costs, not a death panel for Medicare and Social Security,” White House spokesperson Andrew Bates said in a statement issued this week.

These are benefits that people have earned, and they should expect that Congress and the president will work together to protect those benefits.

Bill Sweeney
senior vice president of government affairs at AARP

The term “death panel” refers to the rescue committees proposed in the bipartisan TRUST Act, which calls for committees to be formed to address each of the country’s ailing trust funds.
That would include Social Security’s pension and disability, Medicare Part A and highway trust funds.
Social Security’s funds are projected to pay full benefits until 2035, at which point just 80% of the monthly checks will be payable.
Medicare’s Part A trust fund, which covers hospital care, is projected to pay full benefits until 2028, at which point 90% of benefits will be payable.

Temporary commissions may address solvency

Halfpoint Images | Moment | Getty Images

Another bill, the Bipartisan Social Security Commission Act, would seek to form temporary commissions to address the solvency of the program’s funds under expedited procedures.
Whether such committees or commissions are necessary to shore up Social Security’s trust funds is a topic of fierce debate among experts.
“The White House needs to stop demagoguing this issue and start taking looming insolvency seriously,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement Monday.
“Attacking a bipartisan idea as a ‘death panel’ demonstrates a lack of seriousness on this important issue,” MacGuineas said, in reference to Bates’ comments.

Yet others fear creating commissions may fast-track changes that the public would not have the opportunity to fully vet.
“AARP doesn’t support these sorts of commissions to do the job that Congress is there to do,” Sweeney said.
Existing congressional committees — specifically the House Ways and Means Committee and the Senate Finance Committee — are already equipped to handle these issues with a bipartisan approach, Sweeney said.

Social Security changes require bipartisan support

Any changes to Social Security’s trust funds would require 60 votes in the Senate by law, and therefore require both parties to come together, he noted.
“For Congress to suggest that this is the reason we have a debt ceiling problem and we should look at these programs to cut, it’s just really outrageous,” Sweeney said.
“These are benefits that people have earned, and they should expect that Congress and the president will work together to protect those benefits,” he said.
Biden is expected to emphasize the importance of strengthening Social Security and Medicare in his State of the Union address, White House press secretary Karine Jean-Pierre said Monday.
The speech is set to include previews of the budget Biden plans to send to Congress on March 9, which includes funding for those programs.

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Consumers are prepared to spend big this Feb. 14, even if it means going into credit card debt, several studies show.
However, there are ways to celebrate the holiday that don’t blow the budget.
Here’s advice from experts on how to save money without skimping on sentiment.

Valentine’s Day gifts like these heart-shaped boxes of chocolates, on display back in 2012 in a Paris shop window, are extra-expensive just before the holiday.
Chesnot | Getty Images

Being in love will cost you.
Valentine’s Day spending is expected to reach $25.9 billion in 2023, one of the highest-spending years on record, according to the National Retail Federation.

This year, Americans will shell out $192.80, on average, on candy, cards, flowers and other gifts for friends, loved ones, classmates and even coworkers, the report found, up from $175.41 in 2022.
Those in a relationship will spend roughly $187 for their significant other, according to a separate LendingTree survey of more than 2,000 adults.
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That’s despite the fact that many Americans are already going into more debt just to afford their day-to-day expenses as prices rise.
Yet, 27% of couples said they will need to rely on credit cards to cover Valentine’s Day costs and, for most of them, it will take at least two months to pay it off, LendingTree also found.

Almost 1 in 5 Americans think a Valentine’s Day gift is worth the credit card debt, according to another report by WalletHub.  

Inflation is notoriously at its worst on Feb. 14. A dozen roses, for example, can cost around $100 on Valentine’s Day, particularly if they are imported. A heart-shaped box of chocolates and, of course, jewelry are also marked up ahead of the holiday.
Meanwhile, credit card debt and credit card annual percentage rates are already at record highs, making any added debt even harder to pay off.
“It’s always important to be careful about what you are spending on but especially when interest rates are as high as they’ve ever been,” said LendingTree’s chief credit analyst Matt Schulz.
“The good news with Valentine’s Day is that there are so many creative things you can do that don’t cost you any money that can be a really big hit,” he added.

How to save money on Valentine’s Day

Julie Ramhold, a consumer analyst with DealNews, also offers these tips to spend less on Feb. 14:

Think outside the box. Part of the reason Valentine’s Day gifts are so expensive is because things such as flowers and jewelry jump in price closer to the holiday. If you want to go the traditional route, make adjustments without cutting corners, she said. For example, rather than buying a dozen roses choose a bouquet made up of blooms of your valentine’s favorite color or forgo the heart-shaped pendant and pick a special piece with a birthstone instead.
Do a DIY date night. Skip the expensive dinner out and make a special meal at home, Ramhold advised. You can even plan the menu, shop and cook together. This may take more effort up front, but the result could be less expensive and more meaningful, she said.
Postpone your celebration. Starting on Feb. 15, everything related to Valentine’s Day will be significantly marked down, so consider celebrating the following weekend. However, the selection will be smaller so if there’s something specific you are shopping for, it may not pay to wait, Ramhold said.
Create your own gift package. Instead of an entire bouquet of red roses, choose one or two and pair them with a favorite treat for your valentine, whether that’s Reese’s peanut butter cups or even a savory snack. “As long as it’s something you know they like, you’ll show the thought you put into the gift, and you can’t go wrong.”
Embrace the middle-school aesthetic. Pair a stuffed animal with a Spotify playlist just for them. This is a good way to show your feelings without going over the top, especially for new couples who may be uncomfortable with grand gestures, Ramhold said.  

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In a study of people in the process of divorce, a surprisingly high share of respondents said parting with their spouse led them to do better at work.
“There is a societal assumption that divorce is always negative,” said Connie Wanberg, a professor at the University of Minnesota. But, she said, “some of these individuals had been in very dysfunctional relationships.”

Delmaine Donson | E+ | Getty Images

Getting divorced is often considered one of the most stressful life events. But, for some people, there could be an unintended positive outcome to splitting up: A boost in their work performance.
In a study of people in the process of divorce, which is online in advance of publication in the scientific journal Personnel Psychology, nearly 39% of respondents said parting with their spouse positively affected their work. Around 44% of respondents, meanwhile, said divorce had a negative impact on their career.

The fact that more than a third of people found divorce led them to perform better at their jobs came as a surprise to study co-author Connie Wanberg, a professor at the University of Minnesota who researches people’s experiences in the workplace.
“There is a societal assumption that divorce is always negative,” Wanberg said. But, she said, “some of these individuals had been in very dysfunctional relationships, and getting away from that relationship allowed them to have a new outlook on life. Some people decided to renew their focus on work and focus on advancement.”
In 2021, there were close to 690,000 divorces or annulments in the U.S., according to the Centers for Disease Control and Prevention. Over a third of Americans between the ages of 25 and 65 have divorced or are currently in the process of divorcing, according to the study by Wanberg and her co-authors.
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Relationship struggles ‘took away from work’

Specifically, the respondents who reported positive impacts at work said that after going their own way from their partner they were more engaged at their jobs and more satisfied with their own performance.

One person in the study said, “Prior to the divorce, I spent a lot of time and energy trying to maintain and fix the relationship and that took away from work.”
“Due to the pressure being gone from the degrading relationship, I’ve been able to have a clear mind for work,” another respondent said.
Carolyn McClanahan, a certified financial planner and the founder of Life Planning Partners in Jacksonville, Florida, said she wasn’t surprised by the study’s results. She’s had clients who were in a much better state of mind following a divorce.
“People in unhealthy relationships often have unhealthy behaviors to help them deal with the relationship issues,” said McClanahan, who is also a member of the CNBC Advisor Council. “Workplace performance might definitely suffer.”

Divorce involves many unpleasant experiences and stressful steps, Wanberg said.
“You have to move or navigate division of belongings,” she said. “You have to tell friends and family. You have to visit a lawyer, sometimes multiple times. These can all impact your feelings at work.”
But for some people, these difficulties, Wanberg said, “are overweighed by the benefits of getting away from a bad relationship.”

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Interest rates are poised to continue to go up in 2023, while inflation is starting to subside.
That is a winning combination for savers, who may get higher returns on their cash while also seeing their buying power increase.
If you’re wondering where to put your cash now, here’s what to know about your choices.

Xavier Lorenzo | Moment | Getty Images

As interest rates go up, 2023 is shaping up to be a good time for savers who stand to earn more money on their cash.
The Federal Reserve last week added a 0.25 percentage point rate increase in the latest in a string of rate hikes to combat record high inflation.

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As the unemployment rate hit a 53-year low in the latest jobs report, the interest rate increases are expected to keep coming. The next increase may come in March, according to Greg McBride, chief financial analyst at Bankrate.com.
“The benefit to savers isn’t just the fact that rates are rising,” McBride said. “Your biggest win in 2023 is going to come from inflation coming down.”
As high prices subside, the after-inflation return on cash is poised to get a lot better this year than it has been for savers in the past couple of years, he said.
When it comes to deciding where to put their money, savers have several options.

Online savings rates reach 15-year high

Primis Bank’s online savings account last week became the first to top 5% in recent years, with a 5.03% annual percentage yield.

“It’s been exactly 15 years since we’ve seen 5% on a savings account,” dating back to February 2008, McBride said.
As interest rates rise, more savings accounts will reach — and surpass — that 5% mark in the next couple of months, McBride predicts.
“Every day we see the bar being raised and more banks increasing their pay outs,” McBride said.

If you already have an online savings account, it pays to be vigilant and check the annual percentage yield, or APY, you are currently receiving.
Online savings accounts tend to pay the highest rates, with rates like 4% or 4.5% becoming more common. However, the national average at brick-and-mortar accounts is 0.33%. Legacy online savings or money market accounts may be locked into lower rates even as the same institution raises rates on newer accounts.
The solution may be to just move your money into a newer account, McBride said.
Because online savings accounts tend to offer more flexibility to access your cash, they are a great place to put money you may need for emergencies.

‘Now is the time’ to lock in longer-term CDs

Interest rates on multi-year certificates of deposit have climbed as high as around 4.5%, but likely won’t go up much further, according to McBride.
“If you’ve been biding your time waiting to lock in one of the longer-term CDs — three-year, four-year, five-year CD — now is the time to make that move,” McBride said.
Because some experts expecting interest rates to decline in 2024, there is an advantage now with longer-term CDs, noted Ken Tumin, senior industry analyst at LendingTree and founder of DepositAccounts.com.
“If rates do fall, now is the time to lock them in,” Tumin said.
One-year and two-year CDs are offering interest rates in the upper 4% range — from 4.6% to 4.85% — and will likely hit 5%, according to McBride.
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Capital One recently became the first major online bank to offer 5% on an 11-month CD, Tumin noted.
Six-month CDs are offering rates comparable to liquid savings accounts, McBride said. However, with CDs, the rate of return is guaranteed, unlike savings accounts.
“A lot of retirees rely on CDs for interest income, and you’re finding the best yields that you’ve seen in 15 years,” McBride said.
CDs are also ideal if you have a specific future cash need, like a wedding that is a year away or tuition payments due at the same time each year, and the offers match your timetable, McBride said.
Of note, CDs require you to lock up your cash for a specified time period, and you will likely face penalties if you withdraw the money sooner.

Series I bonds have ‘become a better deal’

Series I bonds are accrual type savings bonds tied to inflation that are issued by the government.
The current interest rate for Series I bonds is 6.89% through April 30 on new purchases, which is notably lower than the 9.62% rate offered last year.
Despite that higher rate, the fixed portion of the return last year was zero, McBride noted. Now, however, the fixed portion is currently 0.4%, and stays the same after buying. (The variable portion of the rate changes every six months based on inflation.)
“I bonds have actually become a better deal even though the headline rate has come down because you’ve got the ability to grow your buying power,” McBride said.

A packet of U.S. five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015.
Gary Cameron | Reuters

I bonds do come with restrictions that make them less flexible than other options for your cash.
For starters, there’s generally a limit of $10,000 per person per year on I bond purchases. (You can buy an additional $5,000 in paper I bonds with your tax refund.)
You have to keep the money in the I bond for at least a year. If you cash in the I bond in the first five years, you will lose three months’ interest, McBride said.
Consequently, I bonds may not be the best place for your emergency savings. However, they can be a form of tax-deferred savings you hold onto for years or a supplement to your broader portfolio, McBride said.

Money markets, Treasuries also worth noting

Money market funds, which are paying near 4%, are also a “great place to park your money” in your brokerage account, McBride noted.
Vanguard’s federal money market fund is currently offering a 4.4% rate, Tumin noted.
While money market funds tend to be very liquid, they do not offer the same FDIC (Federal Deposit Insurance Corporation) protection as savings accounts, Tumin noted.
Additionally, Treasuries are paying yields that haven’t been seen in many years, with short-term treasuries yielding around 4.5%, McBride said. That may be an attractive option if you’re looking to add to your fixed-income exposure, he noted.
Because Treasuries are generally exempt from state and local tax, they may add to the after-tax performance on your money, Tumin noted. However, these investments typically are not as liquid as savings accounts.

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Smart Tax Planning

If you’re trying to max out the yearly purchase limit for Series I bonds, you can buy an extra $5,000 paper I bonds with your tax refund.
While I bonds are currently paying 6.89% annual interest through April, the rate may decline in May as inflation eases, making alternatives more attractive.

Jetcityimage | Istock | Getty Images

If you’re trying to max out the yearly purchase limit for Series I bonds, your tax refund offers an opportunity to buy even more.
However, you should consider your goals and weigh alternatives first, experts say.

An inflation-protected and nearly risk-free investment, I bonds are currently paying 6.89% annual interest on new purchases made through April 2023, the third-highest rate since they were introduced in 1998.
While the annual purchase limit is generally $10,000 per person for electronic I bonds, you can buy another $5,000 in paper I bonds with your tax refund.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

Buying paper I bonds with your tax refund may make sense if you’re eager to purchase as much as possible, said Ken Tumin, senior industry analyst at LendingTree and founder of DepositAccounts.com, a website that tracks I bonds, among other assets.
There are two parts to I bond interest: a fixed rate, which may change every six months for new purchases but stays the same after the bonds are bought, and a variable rate, which changes every six months based on inflation. TreasuryDirect announces new rates every May and November.

Treasuries, high-yield savings are smart alternatives

As the Federal Reserve continues to raise the target federal funds rate, other assets have become more attractive, experts say. 
“No one should buy I bonds with their tax refund” unless the purchase is part of a long-term strategy to lock in the current 0.4% fixed rate above inflation, said Jeremy Keil, a certified financial planner with Keil Financial Partners in Milwaukee.
For shorter-term goals, Keil points to assets such as Treasurys, high-yield savings accounts or certificates of deposit, with rates that have crept up over the past year.

Right now it’s really easy to get over 4% from an online savings account.

Founder and editor of DepositAccounts.com

“Right now it’s really easy to get over 4% from an online savings account,” said Tumin, noting that rates are the “highest in more than a decade.” 
He said shorter-term CDs are paying higher rates than longer-term CDs because many institutions are expecting the Fed to start cutting rates in a year or so.

Downsides of paper I bonds

Keil said it’s also important to consider the downsides of purchasing paper I bonds tied to your tax return.
“You don’t have much control over the timing of the paper I bonds purchase, so don’t expect to get the current 6.89% rate unless you file your return well before the deadline,” he said.
What’s more, paper I bonds must be converted to electronic form before redemption. “It’s a long process,” he said. “It’s not liquid at all.” More

The New Road to Retirement

Fewer Americans feel confident about their financial well-being and retirement plans amid persistent high inflation and market volatility.
Even high net worth individuals say their savings won’t cut it anymore, according to a report from Natixis Investment Managers.

Why $1 million may not feel like enough

The 4% rule is a popular guideline for retirees to determine how much money they can live on each year without fear of running out later. It suggests that retirees can safely withdraw 4% of their investments (adjusted for inflation) each year in retirement.
“A million may seem like a lot, but many people are surprised when they do the math and realize that 4% of $1 million is only $40,000 yearly,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight. “This is usually quite a bit less than these individuals are likely used to living on.”

Given current market expectations, the 4% rule “may no longer be feasible,” researchers at Morningstar wrote in a recent paper.
“A lot of the rules of thumb we’ve been using are outdated,” Goodsell said. 

‘The name of the game is preservation’

At the same time, the average 401(k) balance is down 23% from a year ago to $97,200, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans. 
“Maybe you have that $1 million but you’ve taken a 20% hit on it,” Goodsell said. “On top of that, prices are higher.”
To get an accurate picture of where you stand, “there’s no shortage of calculators online,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. “Or meet with a financial advisor who can hopefully put you at ease or provide you with a plan to get you feeling better.”
“You can remove the guesswork,” said Boneparth, who is also a member of the CNBC Advisor Council.

There are more millionaires in the U.S. and globally than ever before, with nearly 24.5 million millionaires nationwide as of 2022, according to the latest Global Wealth Report from the Credit Suisse Research Institute. Even so, having seven figures in the bank offers less security than it used to in the face of inflation and extreme market swings.
“That mark is easier to obtain but it may not deliver what we expect,” Goodsell said.
“People need to look at how much they have and take the time to do the math to see how long that will last,” he added. “The name of the game is preservation.”
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The New Road to Retirement

Roth IRAs are a type of after-tax account for retirement savings. Future withdrawals are tax-free if they are “qualified distributions.”
A “five-year” rule for Roth individual retirement accounts may trigger an unexpected tax bill on investment earnings, even after age 59½.
Contributing just $1 to a Roth IRA today can help you avoid a tax surprise later.

Drakula Images | Moment | Getty Images

Flouting the ‘5-year rule’ can mean earnings are taxable

Roth IRAs are a type of after-tax retirement account. Since Roth IRA owners pay income tax on contributions, they can generally withdraw their savings — and any investment earnings — free of tax and penalties in old age.
But retirement accounts come with many rules to prevent potential tax dodges — and Roth IRAs are no exception.

Contributions to a Roth IRA are always tax- and penalty-free. You can withdraw them at any time and at any age because you’ve already paid income tax on those funds.
However, the same isn’t always true for investment earnings on those contributions.

In tax lingo, a Roth IRA withdrawal must be a “qualified distribution” to avoid taxes or penalties. Taxes on investment earnings are at “ordinary income” tax rates, not the preferential tax rates for capital gains.
There are two requirements for a withdrawal to count as a qualified distribution:

Age: You may be hit with a 10% tax penalty and income taxes on any investment earnings you withdraw before age 59½. (There are some exceptions to this “early withdrawal” penalty.)
Time: Here’s where the “five-year rule” comes into play. Roth IRA owners must have their account for at least five years to avoid paying income tax on any withdrawn investment earnings.

Here’s a simple example: Let’s say a 60-year-old contributed $6,000 to a Roth IRA in January 2020. It’s the saver’s only Roth IRA and the first time they’ve contributed money to such an account. The investment has earned about $1,500. In 2023, the saver, now 63 years old, decides to withdraw the full $7,500.
You might think this person is in the clear, since they’re over age 59½. However, this individual would owe income taxes on the $1,500 of earnings because the account hasn’t been open for five years. It wouldn’t be a qualified distribution.

An easy way to start the 5-year clock

Getty Images

There’s an easy workaround to the Roth IRA five-year rule if you don’t mind doing some advance planning, Slott said.
If that same 63-year-old had contributed any money to a Roth IRA at any point beyond five years in the past — even if it was just $1 back in 1990, for example — their investment earnings today would be tax-free when withdrawn. (One caveat: Someone younger than age 59½ may still owe a 10% tax penalty on earnings withdrawn, with few exceptions.)
That’s because the five-year holding period begins “with the first tax year for which a contribution was made to a Roth IRA set up for your benefit,” according to the IRS.
In other words, the initial Roth IRA contribution is what starts the five-year clock, Slott said. It starts Jan. 1 of the year in which the first dollar is contributed. That clock lasts forever and doesn’t reset if future contributions are made, or if the account is closed and then reopened, Slott said.
Savers who qualify to contribute to a Roth IRA should open one to start the clock now to avoid any snags later, Slott said.

Who will ‘never need to know the 5-year rule’

Of course, not everyone is eligible to contribute to a Roth IRA. There are income limits: A single tax filer can’t contribute any money to a Roth IRA in 2023 if their modified adjusted gross income exceeds $153,000. Married couples filing a joint tax return have a MAGI limit of $228,000.
A Roth IRA conversion is one way to sidestep these income limits. And a conversion is another way to start the five-year clock for qualified distributions, Slott said — though he advised that there’s a different five-year rule for converted funds that could trip up taxpayers under age 59½.

That’s what we call a ‘forever clock. Once it starts, it never stops.

certified public accountant and IRA expert

Another important note: The five-year clock may still apply if you inherit a Roth IRA from a deceased accountholder.
Ultimately, though, retirement savers who use their accounts as envisioned by the tax code — as a pot of savings amassed over a long time and for use in old age — don’t need to fear tripping up any of these tax rules.
“If you use the Roth the way it’s intended, you’ll never need to know the five-year rule,” Slott said. More