when my roth becomes a qualified one?

Submitted by Ramon Perez on Tue, 2014-01-21 01:50

In Feb 18 2011 I OPENED A TRAD IRA UNDER MY NAME FOR $6,000 (I AM OVER 62). THIS TIRA WAS OPENED IN FEB 2011 TO COVER 2010.

AFTER THAT EVENT, I OPENED IN LATER YEARS A ROTH IRA AND ALSO A ROTH 401K.

QUESTIONS

1. WHEN DOES THE FIVE YEAR WILL QUALIFY MY TIRA? fEBRUARY 2011 WHEN I OPENED THE ACCOUNT OR THE YEAR 2010 (WHAT SPECIFIC DATE?) SINCE THE FUNDS WERE FOR 2010?

2. AFTER QUESTION 1 IS ANSWERED, I WANT TO KNOW WHEN CAN I CONVERT MY TIRA TO ROTH IRA(KNOWING THAT THE ROTH IRA IS YOUNGER THAN THE TIRA).

3. CAN I CONVERT MY ROTH 401K INTO MY ROTH IRA WITHOUT RETIREMENT? MY WIFE AND I ARE THE SOLE OWNERS OF THE 401K/ROTH 401K.

MY GOAL IS TO CONVERT ALL THE TIRA AND ROTH 401K INTO MY ROTH IRA BEFORE I BECOME 67.

THANK YOU



Submitted by Alan - IRA critic on Tue, 2014-01-21 02:59

  • 1) A TIRA does not have a 5 year holding period and does not become “qualfied” like a Roth IRA. Your Roth IRA will be qualified on 1/1 of the 6th calendar year that it exists.
  • 2) You can convert anytime you wish and are willing to pay the taxes.
  • 3) You can roll the pre tax 401k and the Roth 401k into your Roth IRA when you wish since you are over 59.5. Same for spouse if 59.5. But your plan document must permit such rollovers before you retire. If so, you can do rollovers as often as you wish while still working.

Submitted by Ramon Perez on Tue, 2014-01-28 01:59

Being 62 yrs old, can i roll over my 401K Roth funds to my 3 yrs ols ROTH IRA?I am not planning to withdraw any funds from either.  Just can I roll over these funds?My wife and I are sole owners and only full timers in he 401K and ROTH 401K.

Submitted by Alan - IRA critic on Tue, 2014-01-28 03:30

As indicated previously, your solo K plan must allow such rollovers if you are still working. If the plan document allows it, it is fine with the IRS. Your 5 year holding period would be based on the holding period of your Roth IRA.

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