The Roth IRA has been called “the Swiss Army knife” of personal finance because of its flexibility and the tax-free status of its earnings. That’s the reason so many retiring workers move to roll their workplace 401(k) accounts into a Roth, and why so many financial advisors recommend converting a traditional IRA to a Roth.
The idea is that if you pay income tax on your retirement money now – especially when many account balances are significantly down – your tax-free Roth gains will make up the difference and possibly more.
But beware the 5-year Rule.
Below we’ll guide you through the ins and outs of the 5-year-Rule, but consider matching with a vetted financial advisor for free for more help managing a Roth rollover and other retirement needs.
The 5-year Rule: What You Need to Know
While the contributions to a Roth can be withdrawn at any time, you can’t touch the earnings unless the account’s been open for at least five years. So, if you’re rolling another…
2023-09-03 10:43:00
Original from finance.yahoo.com