Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
If you TERMINATE employment,...

Yes, I'm referring to when one retires (i.e. quits) from their employer.

Then one has the complete rights to rollover into an IRA and access the funds penalty free with a 5 year Roth conversion ladder, or w/ SEPs.

And yes, you are correct, everyone must include distributions as ordinary income tax on any 401k withdraw or Roth conversion, as it goes in tax free. Can't get around this, except to minimize any taxes by staying in low or zero% tax brackets.

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.