3 ms·
You can transfer the money from 401k to IRA to Roth IRA then withdraw it after five years. You have to pay income tax during the IRA to Roth IRA conversion, but
by ahelwer 10y ago
You can transfer the money from 401k to IRA to Roth IRA then withdraw it after five years. You have to pay income tax during the IRA to Roth IRA conversion, but if you're retiring early your tax bracket is likely very low. Similarly, you'll be in the 0% bracket for long term capital gains.
- kudokatz 10y agofor those that are more curious about this, a google-able term is "Roth IRA Conversion Ladder". An alternative is "substantially equal distributions" if I recall properly.