if i roll my 401k into a roth ira will i still need to wait 5 years before i borrow for a first time home purchase?
- Anonymous12 months ago
I would not do that option. Why? Because the way you are doing it does not make financial sense. I will just find ways to make extra money for my home purchase. Also they have alot of companies, programs so you could get into a home. Try this site that helped my friends with loans https://motivatedjay.com/credit%2Fdebt%2Floans
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- curtisports2Lv 712 months ago
You can withdraw contributions from the Roth immediately. To withdraw earnings, you must have the Roth open for 5 years.
But somehow, the idea of paying a big chunk of taxes to convert from a traditional IRA or 401K to a Roth, and then take out money to buy a house, doesn't make a lot of financial sense. You have not planned very well, over-contributing to your retirement and not saving enough outside of it. You should have an expert run the numbers for you and see if you have enough years left to recoup what you are losing to taxes. If it still makes sense to do the conversion, then you can withdraw contributions to the Roth plan for the house.
- exactdukeLv 712 months ago
Have you left that employer?? Otherwise you don't roll it over.
- EvaLv 512 months ago
You can't borrow from an IRA. It would be classified as a distribution. You would be paying taxes now on the conversion. You can withdraw roth IRA contributions at any time. It's the earnings you can't withdraw for 5 yrs.