Question about ROTH Conversion after 59.5

Submitted by Ram Iyer on Sun, 2022-07-03 23:43

Hello:

I am 66. If I rollover my 401K into a traditional IRA today and then convert it to ROTH IRA the very next day, can I hypothetically withdraw the amount tax free a day after (excluding earnings, which probably will be miniscule)? My assumption is, it has not gained anything in a day, and the five-year waiting rule does not apply. Yes, I have a ROTH account at the financial company where I will be doing this, and this account has been there for well over 5 years. Am I following the rules?

Thanks



Submitted by Alan - IRA critic on Mon, 2022-07-04 01:34

Your Roth is fully qualified, therefore all distributions will be tax and penalty free. Note that you if want to convert the entire balance of your 401k, you can directly roll it to your Roth IRA thus avoiding the two step process. But if you want to convert only a portion, then you would roll the entire balance to your TIRA, then select the amount you wanted to convert from the TIRA. If your 401k has any after tax non Roth balance, you would want to roll the after tax portion directly to your Roth IRA with the pre tax amount going to your TIRA.



Submitted by Ram Iyer on Tue, 2022-07-05 19:17

Thanks for the reply.



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