Father is 67 and retiring from corporate life (last week). Liquid Net worth of $930K made up of lump sum retirement ($500K being rolled into IRA), current IRA ($50K), and 401k ($350K traditional 401k, $30K Roth 401k). Essentially no money in taxable accounts and so no cash other than that in tax-deferred accounts above. Also $30K in credit card debt.
Made money this year (>100K so in a high tax bracket) but won't make money next year or thereafter other than small social security.
Will need liquidity this year to live
Why not just take the Roth money now rather than roll over into Roth IRA???? He's reluctant to take distributions from IRA because they're taxable this year but probably won't be next year. He's thinking take the $30K Roth 401k money in cash, live and pay credit card debt down, live on IRA distributions next year and thereafter.
However, is nervous that he's taking money out of Roth. Any catch?