caninelover
Full time employment: Posting here.
Hi everyone,
Question on the 5-year rule related to rolling over a Roth 401k from an employer plan into a Roth IRA after leaving the employer.
I have an existing Roth IRA that has been open for > 5 years. I am no longer eligible to contribute directly to it but have been making contributions to my employer plan Roth 401k. There are also employer matching funds in the 401k that are pre-tax.
When I FIRE I will want to roll over the entire 401k - the pre-tax would go to a traditional IRA and the Roth 401k to a Roth IRA.
My question is - if I roll the Roth 401k over into my existing Roth IRA (which has been open for longer than 5 years) does the 5-year rule apply to the rollover funds, or are they automatically qualified to withdraw contributions (I know I wouldn't be able to withdraw any earnings until 59.5)?
My research seems to indicate that the 5-year rule would not apply but I want to make sure I'm not missing anything...
Question on the 5-year rule related to rolling over a Roth 401k from an employer plan into a Roth IRA after leaving the employer.
I have an existing Roth IRA that has been open for > 5 years. I am no longer eligible to contribute directly to it but have been making contributions to my employer plan Roth 401k. There are also employer matching funds in the 401k that are pre-tax.
When I FIRE I will want to roll over the entire 401k - the pre-tax would go to a traditional IRA and the Roth 401k to a Roth IRA.
My question is - if I roll the Roth 401k over into my existing Roth IRA (which has been open for longer than 5 years) does the 5-year rule apply to the rollover funds, or are they automatically qualified to withdraw contributions (I know I wouldn't be able to withdraw any earnings until 59.5)?
My research seems to indicate that the 5-year rule would not apply but I want to make sure I'm not missing anything...