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[Should I Roll Over My Roth 401(k) to a Roth IRA When I’m About to Retire?] – Clear, tax-smart guidance for people close to retirement

About to retire – or recently retired – and wondering if you should move Roth 401(k) dollars into a Roth IRA? In this episode of The Perfect Retirement Plan?, Phillip Smith explains why a Roth 401(k) is great while you’re working, but why the rules at retirement can change taxes, timing, and flexibility.

We cover the different 5-year clocks, plan withdrawal limits, pro-rata taxation on non-qualified plan distributions, the 2024 RMD update for designated Roth accounts, and the Roth IRA ordering rules that can make a withdrawal fully tax-free.

What you’ll learn
00:00 Intro – 59½ milestone, plan “gotchas”
01:00 Today’s roadmap
01:27 Why Roth 401(k) shines during accumulation
02:17 The 5-year rule & non-qualified distributions
03:12 Plan constraints, menus, costs – plus the 2024 RMD change
05:06 When keeping money in-plan still makes sense (age-55 rule, low costs, creditor protection)
05:57 Why a Roth IRA often wins in retirement
06:29 One IRA 5-year clock and the contribution → conversion → earnings ordering rules
08:23 Coordinating MAGI for Medicare IRMAA; creditor-protection caveats
09:36 Case study – $50k withdrawal: plan vs IRA tax impact
12:46 Action steps
13:55 Closing

Action step
Verify your Roth IRA’s 5-year status, request your plan’s distribution rules, and choose a path that protects tax-free flexibility.

More resources: TidepoolWealth.com and our YouTube channel @TidepoolWealth.
#RetirementPlanning #Roth401k #RothIRA #FiveYearRule #AboutToRetire #RecentlyRetired #TaxPlanning #MedicareIRMAA

Thanks for tuning in to this episode of The Perfect Retirement Plan, and remember: it's not about having the smartest financial advisor, the most money saved, or the highest probability of retirement success. The perfect retirement plan, for you – is the one you act on.

Phillip Smith, CRPC AIF | Financial Planner
Tidepool Wealth Strategies
450 Country Club Road, Suite 350 | Eugene, OR | 97401

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Additional Disclosures:
The opinions contained in this material are those of the author, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Wealth Services, LLC cannot guarantee or represent that it is accurate or complete.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.