Roth 401k rollover to Roth IRA 5 year rule

Does a rollover from a Roth 401k to a Roth IRA start a new 5 year rule?



Only if this is the first Roth IRA contribution. Otherwise, the Roth IRA holding began with the first year a prior Roth IRA contribution was made. The Roth 401k balance rolled over is treated as regular Roth contributions if the Roth 401k is qualified, if not qualified only the Roth 401k contribution basis (shown in Box 5 of the 1099R) is treated as regular Roth IRA contributions. The first year a Roth 401k contribution was made does not become the first year of a Roth IRA contribution.

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