Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Greetings, RBenford, and welcome. You asked:

<<Is it possible to roll over some of my 401K into a Roth IRA and withdraw this amount tax free. Is so, how long does the money have to stay in the Roth IRA before you can take it out.>>

No, it's not possible to transfer your 401k money directly to a Roth IRA. It must first go to a traditional IRA, but once there it may be transferred immediately to a Roth. You may take your contribution from that Roth immediately and it will be free of tax. Any earnings, though, may not be taken tax-free except under very limited circumstances until you are age 59 1/2 AND the account has been open for five tax-years.

Converting your 401k money after it's in a traditional IRA may or may not be a good idea. That all depends on how you will pay the taxes due, how long the money can stay in the Roth, your tax rate today versus that at withdrawal, and the size of plus your desires for your estate. For details, see my analysis at

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.