Permalink Submitted by Alan - IRA critic on Mon, 2023-04-10 23:22
Yes, it is eligible meaning that there would be no penalty on distributions of earnings or of taxable in plan Roth rollovers done in the last 5 years if the distribution occurred after separation from service in the year age 55 was attained, or later.
Permalink Submitted by ssel on Wed, 2023-04-12 00:46
Even so, the benefit is somewhat constrained, as distributions of earnings remain taxable until 59 1/2 (and account open for 5 years). And the pro-rata rule for distributions means that every distribution includes some earnings, unlike for a Roth IRA. And if you roll over to a Roth IRA to try to get around that, the 55-year rule no longer applies.
Permalink Submitted by Alan - IRA critic on Mon, 2023-04-10 23:22
Yes, it is eligible meaning that there would be no penalty on distributions of earnings or of taxable in plan Roth rollovers done in the last 5 years if the distribution occurred after separation from service in the year age 55 was attained, or later.
Permalink Submitted by ssel on Wed, 2023-04-12 00:46
Even so, the benefit is somewhat constrained, as distributions of earnings remain taxable until 59 1/2 (and account open for 5 years). And the pro-rata rule for distributions means that every distribution includes some earnings, unlike for a Roth IRA. And if you roll over to a Roth IRA to try to get around that, the 55-year rule no longer applies.