Roth 401-k Rollover to Roth IRA

[RWG1950]

It is my understanding that if a Roth 401-K is rolled over into an existing Roth IRA (one that has already met the 5 year holding period)
there would be no penalties or tax on subsequent withdrawals from the Roth, assuming the holder had attained age 59 1/2, but if such
rollover were to have been made into a new Roth IRA, the 5 year holding period begins anew for the amount rolled over.
Anyone disagree with my interpretation ? Thanks for replies.

[rbynaker]

Just shooting from the hip here, I think having any existing Roth IRA for 5 years meets the 5-year rule for all Roth IRAs, the number of accounts is not relevant.

Rick

[TAXNJ]

If looking for a reference, see starting TTB 13-13. Conversion Rules if it helps with your scenario (wll also provide IRC references)

[RWG1950]

The 5 year time period for regular contributions does get satisfied on all Roth IRA's (no matter how many you have), but there can be a different 5 year
waiting period for qualifying distributions on various amounts that had been put into the same Roth IRA that had resulted from from rollovers & conversions etc.
The 5 year rule specific to Roth 401-K to Roth IRA rollovers seems to be different regarding rolling into a new versus an existing Roth IRA.
My understanding of this is, a person rolling their Roth 401-K into a new Roth IRA has to wait 5 years to be able to make a qualifying withdrawal from that amount
but a person doing the same thing into a Roth IRA that has already existed for 5 or more years could make an immediate qualifying withdrawal,
assuming the person is age 59 1/2.

[Bucky]

That is correct. New Roth IRA new 5 year period.