A traditional, pre-tax 401(k) may be rolled over to a traditional IRA or Roth IRA if older than 59.5-year-old or if leaving one's job.
Someone commented that:
You can of course convert a [pretax] 401(k) to a Roth IRA, without being 59.5 or leaving the job. I just did that.
How can one convert, penalty-free, a traditional, pretax 401(k) to a Roth IRA, without being 59.5 or leaving one's job? And, assuming such a conversion is possible:
- Does one have to satisfy the Roth IRA contribution criterion on how much one's earn (133,000 USD for single filers and 196,000 USD for married couples in 2017)?
- Does the conversion count toward the IRA contribution limit (5,500 USD in 2017)?
I am aware that there exist some exceptions to the early withdrawal penalty (10% in 2017):
But I believe I have read somewhere one cannot use any of these exception to the early withdrawal penalty to contribute to the IRA.