This is where I got my original impression that a new Roth IRA would have it's own 5-year clock from its first funding, even if the Roth 401k source account had already met the 5-year rule prior to a direct rollover into the Roth IRA:
https://www.irs.gov/retirement-plans/re ... 2rollovers
I don't know if this is current or has been changed by recent updates or new interpretations, etc.
https://www.irs.gov/retirement-plans/re ... 2rollovers
I don't know if this is current or has been changed by recent updates or new interpretations, etc.
How is the 5-taxable-year period calculated when I roll over a distribution from a designated Roth account to a Roth IRA?
When you roll over a distribution from a designated Roth account to a Roth IRA, the period that the rolled-over funds were in the designated Roth account does not count toward the 5-taxable-year period for determining qualified distributions from the Roth IRA. However, if you had contributed to any Roth IRA in a prior year, the 5-taxable-year period for determining qualified distributions from a Roth IRA is measured from the earlier contribution. So, if the earlier contribution was made more than 5 years ago and you are over 59 ½ a distribution of amounts attributable to a rollover contribution from a designated Roth account would be a qualified distribution from the Roth IRA.
Statistics: Posted by ihatecostbasis — Thu Jul 25, 2024 1:36 pm — Replies 9 — Views 615