roth 410k

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L1: roth 410kI have heard you can do a section 72t on a roth ira also? is this true?
can you be actively at work when doing this? can you can continue to contribute to it?
I’m doing a section 72t on my ira starting new year and was hoping I could do one on my wife’s roth for additional income. It is over $500,000. she still works.
thanks.
2017-09-04 18:05, By: namehij, IP: [173.25.153.244]

L2: roth 410kYes, a 72t plan can be done with a Roth IRA, but is rarely needed. Since your wife can distribute all her Roth IRA regular contributions and all her conversions done over 5 years ago tax and penalty free, chances are there is no need for a 72t plan for her Roth IRA. In addition, if she were to start a 72t plan with her Roth IRA, she could no longer contribute to that account, although she could open a new Roth IRA account and contribute to that one.
If her Roth IRA is mostly conversions done in the last 5 years and she is under 59.5, she still may not need a 72t plan since every year that passes another conversion year may have met the 5 year requirement. In 2018, all conversion she did prior to 2014 will have met the 5 year holding period and can be withdrawn without tax or penalty.
Note that it is very rare that a 72t plan is needed when both spouses are working. If you need funds you could raise money by not contributing to retirement plans rather than contributing on one hand and taking money out on the other. 72t plans are rigid and can be somewhat risky. As such they are usually a last resort, particularly with the friendly Roth IRA distribution ordering rules.
2017-09-04 18:38, By: Alan S, IP: [24.117.172.15]