- Joined
- Oct 13, 2010
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- 10,777
As the year winds-down, I'm nearly back to zero on my after-tax funds. That means another withdrawal from the tax advantaged accounts. I left the company at age 55, so no 10% penalty pulling from traditional 401k, but they insist on 20% withholding. But since I'm controlling MAGI for ACA PTC, I'll not be owing that much tax. I found it annoying to pay a big wad to the treasury and then having them give it back to me.
But I didn't see anything wrong with doing a (direct) conversion from traditional 401k to my existing external Roth account, then pulling that money out whenever I wanted, presumably without tax consequences. My external Roth has been open for well over five years.
Did I outsmart Hewitt and skip past their mandatory withholding?
But I didn't see anything wrong with doing a (direct) conversion from traditional 401k to my existing external Roth account, then pulling that money out whenever I wanted, presumably without tax consequences. My external Roth has been open for well over five years.
Did I outsmart Hewitt and skip past their mandatory withholding?