BrianB
Recycles dryer sheets
I thought I knew the answer to the following question, but I may be wrong:
DW's 401k was about 90% pretax & 10% after tax. We rolled it into a new Trad. IRA (the 90%) and her existing Roth IRA (the 10%). No problem.
Regarding the 10% that is now in her Roth:
Is this money treated as a contribution (can withdraw any time any reason no penalty no tax)
or
Is it treated as a rollover or conversion (5 year waiting period to withdraw without penalty if under 59.5) ?
I've looked at a number of web sources and even some IRS documents, but I haven't found a clear answer. It seems to me that if it was treated as a contribution there would be problems related to other IRS rules about contribution limits, etc.
If it is treated as a rollover or conversion then the waiting period applies for under 59.5 withdrawals?
Does anyone know a source with a reliable answer to this one?
DW's 401k was about 90% pretax & 10% after tax. We rolled it into a new Trad. IRA (the 90%) and her existing Roth IRA (the 10%). No problem.
Regarding the 10% that is now in her Roth:
Is this money treated as a contribution (can withdraw any time any reason no penalty no tax)
or
Is it treated as a rollover or conversion (5 year waiting period to withdraw without penalty if under 59.5) ?
I've looked at a number of web sources and even some IRS documents, but I haven't found a clear answer. It seems to me that if it was treated as a contribution there would be problems related to other IRS rules about contribution limits, etc.
If it is treated as a rollover or conversion then the waiting period applies for under 59.5 withdrawals?
Does anyone know a source with a reliable answer to this one?