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URL:  http://boards.fool.com/would-you-please-be-so-kind-as-to-show-me-where-30769615.aspx

Subject:  Re: 401k withdrawal taxes at retiremtent Date:  7/10/2013  2:54 PM
Author:  vkg Number:  118843 of 121144

Would you please be so kind as to show me where in Pub 590 Chapter 2 it states that I can roll a IRA/401k directly into a Roth without paying taxes on the rollover

Rollovers are taxed. If you were going to take a distribution that is taxable and invest it, then a conversion to a ROTH has the advantage of the potential for future income being tax free.

ROTH IRAs also don't have required minimum distributions.

I can contribute to a Roth and take anything more than the original priciple back out before the 5 year time period without paying taxes on the interest/dividends?

The five year period is from the time the IRA owner established their first ROTH IRA. It is not for every conversion or contribution. You can establish a ROTH of any size now to start the clock.
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