qbteachmt
Level 15

"If they would have already had a Roth IRA before and rolled over into it"

You don't have to roll into it. That's the trick. You just need one to have existed at least 5 years earlier time (no, Roth 401(k) doesn't qualify for this provision, since it is an employer plan), even if it is not the one you use, later. Park $500 somewhere, and then roll/contribute to a different one that you use for investments, for instance. It's like the old days where you have a small Savings account + your Checking account.

I can't even count how many times I have had to correct brokers on the provisions, and I am not a retirement advisor by profession. More like, out of self defense  🙂

 

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