Q.: I am 47 and plan to retire at 62. I have been contributing to the Roth feature of the Deferred Compensation 457(b)/401(k) Plans of the City of New York for as long as it has been offered. At retirement I plan to roll over the two Deferred Compensation Roth accounts to a NYCE Roth IRA. After the two rollovers are executed, does the 5-year rule start up again? D.S.
A.: Yes it does, and this is why I urge you to open up your NYCE Roth IRA now. At retirement, you will be older than 59.5 and the Roth IRA will be older than 5 years. Upon retirement, you will have satisfied the two requirements for making tax-free withdrawals from your NYCE Roth IRA.
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