Minimum time criteria for Roth IRA/401K
There is a requirment for 401k Roth withdrawel at 59 1/2 without penalty, that the account must be in existance for 5 years, and obviously you must be over 59 1/2. Ignoring for the moment, the reasons that I would want to withdraw the funds, my question is, if I rollover the Roth 401k after two years to an existing Roth IRA, that only has a few thousand it it, does the account status of the IRA then satisfy the requirement for the 5 years, and can you then, immediately (or almost immediately) withdraw the whole amount without penalty? I am assuming that the Roth 401k would have $40,000 in it, and the existing Roth IRA would have $1000 in it, it that makes a difference.:confused:
Mens ability to see the future is limited by their horizons of today!