Roth 401k rollover to existing Roth IRA
A client 62 years old established a Roth IRA in March of 2004 with $5000. She is still working, part of her 401k is a Roth. The money in the 401k Roth is NOT 5 years old. Can she roll the 401k money into her existing Roth IRA that is 6 years old and not have to wait to take tax free distributions?
Permalink Submitted by Alan Spross on Tue, 2010-07-06 17:45
Since the Roth IRA is now qualified, any rollovers of Roth 401k balances into it will also be instantly qualified for tax free distributions. However, if she is still working, she may not be allowed to roll over the Roth 401k. She needs to check with the plan administrator. Some plans allow in service distributions after age 59.5.