Author Topic: Roth IRA conversion, then allocation change  (Read 1583 times)

pdxvandal

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Roth IRA conversion, then allocation change
« on: March 31, 2014, 10:19:32 PM »
I've read after five years of converting a 401k to a Roth IRA, you can withdraw the contributions and earnings. However, what happens if you reallocated your conversion to other funds after the conversion? Is this easily tracked by the brokerage firm, or does a tax advisor need to be employed?

Bruno

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Re: Roth IRA conversion, then allocation change
« Reply #1 on: April 07, 2014, 09:49:31 AM »
You mean you just change your asset allocation within the Roth IRA? You can do that.

Eric

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Re: Roth IRA conversion, then allocation change
« Reply #2 on: April 07, 2014, 12:01:24 PM »
I've read after five years of converting a 401k to a Roth IRA, you can withdraw the contributions and earnings.

You can withdrawal your converted contributions penalty free after 5 years.  You will still pay a penalty on the earnings if you withdrawal them before age 59.5.

Selling shares and buying other shares within the Roth doesn't affect contribution dates.

seattlecyclone

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Re: Roth IRA conversion, then allocation change
« Reply #3 on: April 07, 2014, 01:28:29 PM »
Yes, you may only withdraw the contributions penalty-free. If you roll over $100k from your 401(k) to a Roth IRA, you may withdraw $100k from that account penalty-free in five years, regardless of what assets you hold in the account or how many trades you perform during that time.