Yes, unfortunately they had to violate the rules. They have not reached the required age, and from what I understand, the 5-year rule starts over with the 'New" Roth IRA. Even though they had contributions longer than 5 years in their Roth 401(k)'s, they didn't have a Roth IRA in place prior to rolling over. If they would have already had a Roth IRA before and rolled over into it, the 5-year rule begins with that Roth IRA. That is good advice to open a Roth IRA now if you plan to eventually roll over from a Roth 401(k). Also, even if you are 59 1/2, you still have to meet the 5-year rule to withdrawal the earnings tax free, from what I understand.