Investing - Theory, News & General • Rule of 55 Question

There was a simple way to take out your own contributions, pay tax on it but no penalties.

Not sure just what that would be. Too bad you don't remember the details.

I don't remember the details, but it may have been to roll over some of your own contributions to a Roth IRA and pay the income tax on that. Then you could withdraw from the Roth IRA penalty-free.

This would only work if you roll Roth 401k to Roth IRA. It would not work for traditional 401k (without a 5 year wait).

Maybe you would have to have had a Roth IRA open for 5 years already.
Something like that.

This isn't quite right either. Not sure what the rep advised you to do unless it was rolling Roth 401k to Roth IRA. Everything else I can think of would result in a penalty.

Statistics: Posted by retiredjg — Sun Aug 25, 2024 7:01 pm — Replies 14 — Views 1063

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