DianeW777
Expert Alumni

Retirement tax questions

Perhaps the information here will provide clarification for you.  Contributions to either Roth account will always be after tax contributions.

The earnings will always be earnings regardless of whether a rollover occurs.

 

Note: Because you did have your Roth IRA for more than the five year rule requirement the clock will not reset for your Roth 401(k) also met this rule.  Most people might not realize that when you rollover a Roth 401(k) to a Roth IRA, the clock is reset, only if you have not met the five year rule for both accounts. 

 

In summary, if you make any withdrawals and you are at least 59 1/2 years of age there will be no tax consequences since you met the five year rule.

 

A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. (IRS Publication 590b)

  1. It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit.

  2. The payment or distribution is:

    1. Made on or after the date you reach age 59½,

    2. Made because you are disabled,

    3. Made to a beneficiary or to your estate after your death, or

    4. One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit).

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