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rolling over roth 401k

OK, Kevin or other accountants,

So setting up my company and wanting to rollover my current employer's roth 401k to my own roth IRA, they are telling me I can not submit a rollover until I have terminated employment. I have had the account since 2012 so I have met the 5 year "freeeze" on the funds. My accountant says I can withdrawl the contribution funds with out penalty, but the company paperwork says ther is a 10% penalty plus tax implications. Can I rollover the roth 401k from my employer to a individual roth 401K with the loan option? I figure the best terms other than cash to purchase the truck is to loan the money to my self.


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Jeremy, I definitely want you to get a second opinion from a tax professional because I'm not an expert when it comes to accounting and investments. Here's what I think. I think they are right in that you must terminate employment to roll it over into your own IRA. As for the penalty, your money is sheltered in a retirement fund and I believe the age in which you can draw off of it is 59 and a half. So if you are younger than 59 and a half you will pay a 10% penalty and there may be additional tax implications, but not sure. If you are older then 59 and a half then there is no penalty and since you have it in an Roth IRA there will be no taxes due on the money you take out.

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Jeremy will be eternally grateful.
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