Roth 401(k) to Roth IRA roll over

1 Reply

Hi!

I have tens of thousand in my company's 401(k) Roth, and I plan to move to another company this year. I just recently knew that Roth IRA has much more benefits:

- Withdraw the principal anytime tax-free

- Withdraw the gain can after five years tax-free

- Possible to make a self-directed investment (e.g., use it to finance your REI)

with the following limitation:

- $6K contribution limit (workaround with backdoor IRA)

- 1/year limit to transfer between a different institution (possibly with a cost too)

Please let me know if any of what I learned is wrong.

My conclusion is it's best to have a Roth IRA account as soon as possible to pass the five years limit.

My questions are:

- Are the five years limit tied to the account? I plan to put it into robo-investment and after five years, move it into an institution that supports self-directed investment

- Any contribution limit on doing the rollover?

Thanks!

@Muhammad Adinata Thayib

5 year rule taking money out also includes being of age , at lest 59.5 years old. 

Transfers don’t take a year, if you do a rollover you only have 60 days. 

You can't use your Ira to finance your personal property/REI. Your Ira can buy real estate instead of stocks or mutual funds.

I believe opening a Roth today is a great move! 

You can have a Roth IRA and Roth 401k. Both have great attributes. Get professionals to help you plan the best move or strategy.