Roth IRA
If an individual has been contributing to their 457 Roth account for more than 5 years and then upon retiring converts this account to their own Roth IRA and they are over 59 1/2, must they wait 5 years, assuming they have no other Roth IRAs, before taking distributions which are totally tax free?
Permalink Submitted by Alan - IRA critic on Fri, 2017-10-13 19:32
The amount of the 457 rollover can be withdrawn from the Roth IRA tax free, but any earnings generated in the Roth IRA after the rollover will not be tax free until 5 years passes including the rollover year. Those earnings will come out last and they likely will only be a small portion of the balance.