CRUCIAL 401K to Roth IRA Conversion Rules You Need to Know

[@FIREPsyChat]

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[@TravelingTheWorld1993]

Please do a video on IRA providers. Focusing on lowest fees / active traders / long term investors. Thanks

[@wdeemarwdeemar8739]

Can you do a video on dates to change out TSP deductions to take effect on Jan 1 2025? My pay isn’t clear.

[@mtombak]

If you withdraw money from your 401(k) before you're 59½, the IRS usually assesses a 10% tax as an early distribution penalty too.

[@Immacu1ate]

This isn’t a withdrawal.

[@mtombak]

​@@Immacu1ate How do you do a roth conversion without withdraw money from 401k then?

[@FIREPsyChat]

Roth Conversion is not a 401K Withdrawal

[@xaldath4265]

Don't confuse the result based on the term withdrawal. Withdrawal, in this context, refers to money that completely exits the tax-advantaged account structure, not just out of the 401k. A conversion from 401k to IRA(traditional or Roth) keeps the money within tax-advantaged accounts, so it doesn't count a withdrawal for tax purposes.