Around the 22:00 minute mark, Rita seems to be confusing RMDs with Roth money, stating that RMDs need to stay in the account for five years to be tax free and penalty free. We thought the question was about Roth conversions. These statements are confusing.
Hey there. Thanks for asking this question. This is definitely something we can touch on. We'll cut right to the chase here. The 5-year rule is counted separately for each conversion. More insight can be found in the handy link from Fidelity.com below. Roth IRA 5-Year Aging Rule: www.fidelity.com/learning-center/personal-finance/retirement/roth-ira-5-year-rule As always, let us know if you have any questions!
@@fidelityinvestments Does the rolling over of Roth IRA (opened in age 30) from one institution A to institution B (age 50s but not 59 1/2) as painless as rolling over pretax old 401k to current employer 401k? What if starting Roth 401k now at age 53 and later on rolling over to institution B Roth IRA? Would 5 year rule based on Roth 401k contribution or the Roth IRA open date, assuming don’t take any money out until after 59 1/2? Also what if converting pretax 401k annually to institution B IRA annually starting age 58 to lower RMS at age 75? Does the 5 year rule apply to the converted $ after age 59 1/2?
Hi there, thanks for following up with us! We're happy to help provide some insight into this. To answer your first question, if you have a Roth IRA and decide to move it to another firm, you can typically transfer it by initiating a Transfer of Assets (TOA). This is a transfer directly between firms, initiated at the receiving firm, and is not a reportable or taxable event. If you'd like to transfer the account to Fidelity, you can start the process online using the link below. TOA: www.fidelity.com/customer-service/transfer-assets Regarding the 5-year aging period for Roths, it's important to note that each Roth IRA conversion has its own 5-year aging period, which starts once the assets are deposited into the Roth IRA. However, your 401(k) is a bit different. When funds are rolled over from a Roth 401(k) to an existing Roth IRA, the rolled-over funds inherit the same timing as the Roth IRA. This means the aging period for the Roth IRA applies to the funds rolled over from the Roth 401(k) account. If you roll Roth 401(k) funds into a Roth IRA that has met the 5-year aging period, those rolled over funds have met the aging requirement. As for the Roth IRA timing, the aging period begins on January 1 of the tax year, for which the first annual contribution or conversion is made into your Roth IRA. Once your 5-year aging requirement for your Roth IRA has been met, Roth 401(k) assets rolled into a Roth IRA are immediately considered to have met the 5-year aging requirement. The article linked above in our previous response provides further details if you'd like to learn more. As always, we appreciate your engagement with us. Please let us know if you have additional questions; we're here to help.
We appreciate you mentioning your friend's experience, as we strive to make sure all of our clients have access to the educational resources we share. We'll be sure to share your feedback with the right teams. In the meantime, TH-cam does support closed captioning by clicking the "CC" icon on the video, and at the bottom of the video description, there's a button to "Show transcript," which will pop-up next to the video player. For on-demand webinars on Fidelity.com, viewers can also typically find links to download a transcript and the slides for the video they're watching. On-demand webinars: www.fidelity.com/learning-center/events/investing-webinars If we can help you with anything else that comes up, please let us know!
Im tap in real great now im for the people thing are going back to how it supost to go not weird Conspiracy crap it's true mr what are we going to do about him we be screwed . He was right SCREWED
I got to stop using talk ttext it was on and word i didnt say was poping up i got Witnesses it best yall fix everything before u make God even madder then he already is im not forgive nothing i dont have to
Great content 🎉
Around the 22:00 minute mark, Rita seems to be confusing RMDs with Roth money, stating that RMDs need to stay in the account for five years to be tax free and penalty free. We thought the question was about Roth conversions. These statements are confusing.
Itbstarted 8 year ago to get ride of me i just woke up so just thhank what kind of down load i got when yall slowed down my awakening
Thanks
Is the 5 year rule on each 401k Roth contribution and each Roth conversion, say you have those contributions and conversions on different years?
Hey there. Thanks for asking this question. This is definitely something we can touch on.
We'll cut right to the chase here. The 5-year rule is counted separately for each conversion. More insight can be found in the handy link from Fidelity.com below.
Roth IRA 5-Year Aging Rule: www.fidelity.com/learning-center/personal-finance/retirement/roth-ira-5-year-rule
As always, let us know if you have any questions!
@@fidelityinvestments
Does the rolling over of Roth IRA (opened in age 30) from one institution A to institution B (age 50s but not 59 1/2) as painless as rolling over pretax old 401k to current employer 401k?
What if starting Roth 401k now at age 53 and later on rolling over to institution B Roth IRA? Would 5 year rule based on Roth 401k contribution or the Roth IRA open date, assuming don’t take any money out until after 59 1/2?
Also what if converting pretax 401k annually to institution B IRA annually starting age 58 to lower RMS at age 75? Does the 5 year rule apply to the converted $ after age 59 1/2?
Hi there, thanks for following up with us! We're happy to help provide some insight into this.
To answer your first question, if you have a Roth IRA and decide to move it to another firm, you can typically transfer it by initiating a Transfer of Assets (TOA). This is a transfer directly between firms, initiated at the receiving firm, and is not a reportable or taxable event. If you'd like to transfer the account to Fidelity, you can start the process online using the link below.
TOA: www.fidelity.com/customer-service/transfer-assets
Regarding the 5-year aging period for Roths, it's important to note that each Roth IRA conversion has its own 5-year aging period, which starts once the assets are deposited into the Roth IRA. However, your 401(k) is a bit different. When funds are rolled over from a Roth 401(k) to an existing Roth IRA, the rolled-over funds inherit the same timing as the Roth IRA. This means the aging period for the Roth IRA applies to the funds rolled over from the Roth 401(k) account. If you roll Roth 401(k) funds into a Roth IRA that has met the 5-year aging period, those rolled over funds have met the aging requirement.
As for the Roth IRA timing, the aging period begins on January 1 of the tax year, for which the first annual contribution or conversion is made into your Roth IRA. Once your 5-year aging requirement for your Roth IRA has been met, Roth 401(k) assets rolled into a Roth IRA are immediately considered to have met the 5-year aging requirement. The article linked above in our previous response provides further details if you'd like to learn more.
As always, we appreciate your engagement with us. Please let us know if you have additional questions; we're here to help.
@@fidelityinvestmentsthanks!!!!
No problem at all! Please continue to reach out with any other questions you may have.
My friend is deaf u might want to provide big caption for those who have these disabilities. He's/ they have fidelity investments
We appreciate you mentioning your friend's experience, as we strive to make sure all of our clients have access to the educational resources we share. We'll be sure to share your feedback with the right teams.
In the meantime, TH-cam does support closed captioning by clicking the "CC" icon on the video, and at the bottom of the video description, there's a button to "Show transcript," which will pop-up next to the video player. For on-demand webinars on Fidelity.com, viewers can also typically find links to download a transcript and the slides for the video they're watching.
On-demand webinars: www.fidelity.com/learning-center/events/investing-webinars
If we can help you with anything else that comes up, please let us know!
Im tap in real great now im for the people thing are going back to how it supost to go not weird Conspiracy crap it's true mr what are we going to do about him we be screwed . He was right SCREWED
I got to stop using talk ttext it was on and word i didnt say was poping up i got Witnesses it best yall fix everything before u make God even madder then he already is im not forgive nothing i dont have to
I'm late
My heavenly father said your guy's days of putting people on the islands and acting like they passed away are over