Sentences with phrase «free conversion principal»

There are two 5 year rules that apply to Roth 401ks — The Roth conversion 5 - year rule is about accessing penalty - free conversion principal (and is irrelevant if the individual already meets one of the other exceptions to the early withdrawal penalty), while the Roth contribution 5 - year rule is about accessing tax - free Roth earnings (which are assumed to be extracted last, anyway).

Not exact matches

Roth conversions: convert money out of your IRA into a Roth IRA so that all future growth, income, and principal are 100 % tax - free.

The first 5 - year rule states that earnings on Roth contributions will be tax - free and the second rule applies to conversion principal being penalty - free.