I did a Roth 401K rollover to Roth IRA this year in 2025. This will be the 1st year for the Roth IRA.
I am over 591/2 years of age so I meet that requirement.
Future distributions taken before Jan 1, 2030, will not be qualified due to the 5 year rule.
Please help me understand how the pro-rata rule and 5 year rule will come into play if I decided to take an unqualified distribution before the 5 year period is up. I have read so many conflicting information in my research. Also how does the source hierarchy affect any tax implications?
If I make bad investments and incur losses to the point my Roth IRA current market is less than original rollover amount, does that have any bearing on an unqualified distribution?
What is the pro-rata based on and does it change over time based on losses or increases?
