Can you withdraw all contributions penalty free in a Roth (401k, IRA) anytime after 5 years and before age 59.5? I know withdrawing gains for health/tuition/home is exempt but what about contributions

like
Posting as :
works at
You are currently posting as works at

The 5 year rule is if you roll over an IRA to a Roth IRA. I.e if you roll over $5,000 from an IRA/401k to a Roth, you'll have to wait 5 years before you withdraw penalty free. You can withdraw your Roth contributions at anytime, penalty free.

What Acc1 is referring to is a Roth IRA conversion ladder that uses the concept above.

like

I've heard there’s some loophole where you can withdraw if you haven’t reported any income to the IRS for five years, effectively because you have “retired” and no longer work, thus you can now withdraw from your 401k pot penalty free.

However, take this with a grain of salt - I’ve not researched it myself, and it does seem a little random/weird to have a loophole like this.

One of the benefits of a Roth account (speaking of the IRA) is that you can pull an amount up to what you contributed without tax or penalty. You can also roll over part of it as a first time home buyer without penalty.

If I have $18,500 in a Roth 401k for example, can I roll all $18,500 to a Rot IRA within a year?

Related Posts

Long shot…anyone here have body shop recommendations in the western suburbs? Car was hit yesterday and insurance’s recommended shop doesn’t have availability until February.

like

What personal finance / investing books would you recommend to someone in their late twenties who is starting to have decent amounts of capital to invest?

like

What’s a good way to find out what’s hot in insurance (PnC)? I cut my teeth in PnC but have been in health for a decade. Contemplating a jump.

like

Any good underwear brand? Looking for something sustainable and cotton (heard it’s good for health)

like

I lived and worked in the US for 5 years with H1B. I currently live outside. I still have my US credit cards and bank account open. Will it cause me any trouble in the future? should I close them all? The reason I don't want is I want to keep my money in the US.

like

For my media peeps, what're your thoughts on the benefits of going to an independent agency versus one of the holding companies? (Also, why would a client go this route?)

Any doctors in here? 31/M and get occasional sharp chest pains. Any notion to what my outlook for causes are? No health insurance currently and little in reserves.

like

I am 31. I have $750k in assets and 400 in liab. Net worth is 350. Largest assets (excluding real estate) are 120k in 401k, 40k in brokerage, 20k in crypto, 25k cash. Own property totaling $550k (2 condos) but debt of 350k so 200k of my net worth is in real estate. Student loans of 30k. Thread continued 👇🏽

like

How is FIS Global to join as a senior business analyst, any idea about their insurance suite product (formerly -compass, @sungard product). Total year of experience -8+ year.FIS Global

like

Has anyone done provider network design work for a health plan? If so, how did you like the work?

like

When completing your company's voluntary personal information section, do you self- identify as having a disability? Are there risks or benefits in doing so?

like

Can anyone recommend good investment options in Bank of America HSA account? I feel their funds are very limited compared to what I have seen from 401k and IRA. Anyone recommends your HSA account?

Recommendations for how to allocate 401k with Fidelity. Just switched jobs and have to move from Merrill Lynch to Fidelity

like

For those who work 100% remote with their company, what health insurance provider does your company offer? (ie. UHC, Aetna, BCBS, etc)

like

How much is medical examination for Green Card supposed to cost? Does insurance cover the same?

like

Do you feel like women are underrepresented in the insurance industry? I work with a ton of great women and didn't really think much about it until I spoke to a friend who also works in office, she says there are like 5-10 female employees out of over 100 CSM's. If you think there are less women in insurance than men, why do you think that is?

like

Need some encouragement: 1. my husband just resigned from his job as it was beginning to give him mental health challenges and even put him in counseling. I am now the only income producing person. 2.I haven’t been tithing in a couple years (mainly bc I moved to seattle and haven’t found a church home…Covid didn’t help). 2. Leaving amazon for a better paying job that God blessed me with, at a great time. I don’t have the margin to tithe but know I need to. If you’ve been in this sitch, advice?

like

How did you know when you needed to leave consulting?

I never had anxiety before, but am increasingly dreading work in the morning (people are great, just the pressure takes a big toll). Took a month long mental health leave and am still in the exact same boat. Maybe it’s time?

like

Seeking advisement on HELOC…..
Currently married with one child. Own two condos in the state of Hawaii. We moved in with my in laws to get some help with our 2 yr old during Covid. I owe about $150k (market value $530k) on property one and owe $490k (market value $790k) on property two. My wife and I both work and have a combined gross income of $370k/yr. With about $120k in liquid cash, should we try pay off prop one and get a heloc for a SFH?

like

Hyatt free night CAT 1-7. Anyone want to buy this off of me? Can book with globalist benefits.

like

More Posts

Thoughts on dating on your own project? Fell in love but don’t know what to do.

Waitlisted at Stanford 🙃🙃🙃 if anyone has been through this before, please DM me!

like

Howz the work life balance of a Senior Consultant in tech consulting in a client facing role in EY India?

Skills: Java 8, Spring Boot.

Please do answer with respect to EY India only.

Role will be as a tech lead in java development team.

Client probably HSBC.

Few days left in Notice Period.

like

What's the best way to get a Nintendo Switch OLED to use my Deloitte well being subsidy?!
TIA

like

London: possible to negotiate no/a reduced probation period while lateralling?

like

Curious what’s a fair salary in MA? Was just told that there is likely not going to be a chance for a raise during my upcoming performance review due to my salary already being “above average for the industry” based on my employer’s questionable research. I’ve been with the company 8.5 years & am the only one in my role, which they can’t operate without. I execute tasks from two investment advisors and two financial planners - they make the decisions of what should happen & I make it happen.

like

Anyone else realize thay they are a generous gift giver throughout the wedding planning process? I have never given less than $150. Also, the amount of $$ given to us has no tie to how close we are to the gift giver or the gift giver’s financial status. We have close wealthy friends giving $100 and not-as-close working class friends giving $300. Meanwhile, no siblings giving anything. Has this happened to others?

like

How and why did you switch to freelance?

like
like

Hello Fishes,

What is the official notice period in walmart?

like

Just started a new job a couple of weeks ago and also today found out my wife's pregnant. When is an appropriate time to tell my new boss? Company policy asks for 3 months notice but it's a growing startup. What does everyone think is appropriate?

like

Anyone have good examples of personal pm website/portfolios and resumes?

like

Has anyone here had any experience with Eisner’s Outsourced Services department? I’m looking for some insight.

like

Is leave deduction started by HRs for the associates not reporting to office three days in a week?

like

obligatory post: how will COVID impact human capital? The types of work we do, factors in making a healthy organization, etc.

like

9/9 Thread (General):

likehelpful

Instead of slapping each other with this hitpiece or that yellow journalism, let's change things up a bit.

What is a policy you would want to see implemented? And why?

Let's keep this civil and leave the political talking points on the wayside.

like
helpful

Deloitte India - What's the tentative date for return to office. Also what is the office location in Bangalore. Is there multiple offices.

like

Additional Posts in Personal Investment Chatter

I make $140k in New York. Should I invest a Traditional 401K or a Roth 401K or do a split?

like

New to cryptocurrency and want to invest in it. Recommendations welcome. How to start? Coinbase vs. GBTC via Vanguard? Is it a good time to enter?

like

Are folks buying homes with 6%+ mortgages? Or waiting till things cool down?

I’m a homeowner and we have a 3.25% on a $600k loan. Likely needing to upsize to a $1.5-2.0M home (VHCOL) because of kids, but balking at the idea of paying $6-8k/mo in interest charges alone.

like

Anyone know where to get a cheap fixed rate loan?

like

Is watch a good investment vehicle in terms of resale value?

like

Thoughts on a high yield savings account (~2.25% interest) vs a money market account (~2.5% interest)?

like

Looking to invest in some new stocks. Any recommendations? TIA

like

Are there any ETFs for blockchain companies?

like

Any thoughts on zero cost fidelity funds. Any you like?

like

About to close on our first house and wondering if you can pay mortgage using credit cards to get additional point benefits (or a prepaid debit card that is replenished using a credit card). Don’t want to let 30k worth of expenses go without benefits if at all possible. Thanks in advance

like

Any thoughts on where AMZN will be priced after the Q3 earnings call?

funnylike

What are you doing with the money you are saving right now?

like

How do I know what to add to my roth? I have a few indexed funds but haven’t dabbled in stocks. I’m 25 years old so I want to do something riskier. I have $1500 to invest in something today...

like

How much margin is appropriate/recommended on a percentage of portfolio basis? I used to use about 10% but now that we’re in a bit of a correction it’s closer to 20%. I really want to add to positions on these dips but it would only increase the risk given the margin exposure...

like

New to investing. Looking for any/ all tips... book recommendations, YouTube videos on how to get started

like

What are some ways you guys earn passive income (other than stock market) ?!

like

For those who save a lot of money or have received a large inheritance. Such as someone who doesn't owe a mortgage or have any major expenses, or owe any debt...

What are you planning on doing with the money? I have 200k indexed along with money in my retirement and I spend on average about $500-700 a month total. I am saving about 3k a month between retirement and brokerage.

like

What blogs/books/resources should I seek out if I want to make the transition from passive trading (index funds/buy and hold blue chips) to more active trading (options, speculation, spending a few hours a week researching, etc)? I’m looking to turn my investing into more of a side hustle

like

I’m considering Schwab roboinvestors to manage my investments actress various index funds aligned with my risk profile. Aside from the large 6% cash requirement, what are other downsides?

Fully aware this is a newbie question. Looking for the best way to get started in purchasing stocks. I used to use E-Trade back in high school like 11 years ago, but stayed away to focus on paying

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal