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Good afternoon,

Has anyone walked through this in enough detail to offer a bit more color?

It sounds like you could pull $100k from a 401(k), move it to a Roth in something earning income, then remove income up to the Roth contribution truly tax free. Toss in the final 401(k) substantially equal distributions the tax year you turn 55 and there might be some nice early retirement potential if someone was well prepared prior to all our covid-19 losses to date.

To be more specific, imagine a situation where a hardship might credibly be called (wife laid off, cram down pay loss) but the $100k now in an IRA is not actually needed to pay bills and such. Then imagine the couple already have material past contributions to Roth IRAs. Now imagine moving capital from a 401(k) or IRA created from a rollover to a Roth in order to generate income. Do we know yet if this sequence works? Are details getting clarified now?

What is the stated time frame for folks to consider moving monies, must it be completed in 2020 for example? Is it accurate that monies need to move from a retirement account to the taxpayer and back to a retirement account within 3 years? How is that three year timer measured, please?

If there is a good primer on this, a link would be welcome. I speak finance and leagalese reasonably well.

Thank you!

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