<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

How do waiting periods work on a 401(k) to Roth 401(k) conversion?

When you withdraw monies from a 401(k) plan, pay the taxes, and reinvest the balance into a Roth 401(k), is there a waiting period of five years before the profit is tax free? Also, if you do this yearly, must each conversion amount be held for five years? Or, once the Roth 401(k) is open, is it only one five-year period?

Financial Planning, 401(k), IRAs, Taxes
Answers
Sort By:
Most Helpful
last month

You can convert anytime and any amount you can tax tolerate.  I highly recommend the book the "power of zero" by David McKnight 

 

Best,  

Brett 

last month
May 2019