@rathail wrote:
I'm 60 and retired. I've had a E*Trade ROTH for 10 yrs. In my company 401K I've converted some fund to the ROTH side. I would like to move the ROTH funds to the E*Trade ROTH but they say it is unqualified for 3 or 4 yrs depending on when the conversion was done. Well, the 3 yrs was after tax funds 4 years for conversion.
I will be doing more conversion to a desired amount before RMDs happen.
Are any new conversion qualified after the 4 yr time frame?
Why can't I move the funds to my fund to a qualified ROTH?
You are confusing several things:
1) Each conversion has it's own 5 year waiting period before the "earnings" can be withdrawn without a 10% penalty. There is no restriction on removing your own prior contributions. However, being over age 59 1/2 makes the 5 year rule a moot point because being over 59 1/2 is an automatic exception to the penalty.
2) "Moving" the Roth to another financial institution is not a distribution subject to the 5 year rule, it is a rollover that can always be done. You would simply have the 401(K) Roth trustee do direst rollover to your Roth IRA and you never see the money.
3) Roth accounts (other than inherited Roth's) do not have a RMD, only Traditional 401(k) plans and Traditional IRA's have a RMD.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
