Roth IRAs are very popular retirement accounts because of their tax-free growth treatment. They also have several unique rules associated with them to ensure their favorable tax status. In particular, there are two different 5-year rules associated with Roth accounts to prevent them from being taken advantage of; the first 5-year rule applies to Roth contributions and determines whether earnings will be tax-free, while the second 5-year rule applies to Roth conversions and determines whether conversion principal will be penalty-free.
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While technically correct, this is unnecessarily confusing. There is no 5 year rule on contributions. The five year rule is on the account itself. Start a Roth IRA at a bank when you are 25 and by the time you are 30, the waiting period is done. This whole video could have been done in about 3 minutes