6 Ways to Build a Roth Retirement Nest Egg
By Rachel L. Sheedy
To qualify for tax-free earnings, you must have had a Roth IRA for at least five years, even if you had the Roth 401(k) for more than five years. “You can roll the money over, but then the holding period does restart if you haven’t opened a Roth IRA before,” says Eric Bronnenkant, head of tax at Betterment for Business. While that’s only an issue if you withdraw earnings in the first five years, he says, it’s a good idea for Roth 401(k) holders to open a Roth IRA right away, even with a small amount, to get the five-year clock ticking.