Author Topic: r401k rollover rIRA time?  (Read 943 times)

MoonLiteNite

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r401k rollover rIRA time?
« on: January 25, 2017, 02:01:41 PM »
Speedy question!
If i make r401k contributions, quit my job, roll the r401k portions over to a rIRA, is the 5 year timer reset before i can pull out from rIRA without penalty?
 

seattlecyclone

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Re: r401k rollover rIRA time?
« Reply #1 on: January 25, 2017, 03:22:01 PM »
The five-year timer for qualified distributions depends on when you first open up a Roth IRA. Roth 401(k) time doesn't count.

However there's no tax on non-qualified distributions of your principal from a Roth IRA, regardless of how long the account has been open.

For the purpose of Roth IRA ordering rules on funds rolled in from a Roth 401(k), only the amount you originally contributed to the Roth 401(k) counts as principal that can be withdrawn tax-free at any time. Any growth that happened before or after rollover counts as earnings, and will be taxed unless you're old enough and have had a Roth IRA long enough to take a qualified distribution.

MoonLiteNite

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Re: r401k rollover rIRA time?
« Reply #2 on: January 25, 2017, 08:27:01 PM »
Boom simple!
That is what i was trying to check. Better than i thought. Thanks
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