Quote:
Originally Posted by Plinker
Don’t forget, you will not be able to access the converted ROTH money for a period between 4 years plus one day to 5 years, depending on what date you do the conversion. Regardless of the date of your conversion, the IRS starts counting the 5 year wait on January 1st of the year of conversion. So, a conversion on July 1st has a 4 1/2 year wait while a December 31st conversion only waits 4 years plus one day. Consider waiting until mid-December to convert. Each conversion starts a new wait period.
|
Interesting. I was of the understanding that the five year period was only for five years the specific account was established. I rolled my Roth 401(k) into a newly-established Roth IRA (better self-directed options) a short time ago. I was told the original contributions were still accessible and that only earnings could not be accessed.