TP retiring at age 60 and wants to move his Traditional 401 to a ROTH IRA (not established yet) over the next two years before starting social security at age 62. He wants to move as much as he can into the ROTH IRA without hitting the 22% tax bracket. He'll only be getting a pension and some other small amounts of income so he should have room to convert some each year without hitting 22% bracket.
If he'd establish a ROTH IRA on 1/1/21 and move some of his Traditional 401 to the ROTH IRA he could at anytime withdraw the ROTH IRA contributions without tax consequence but would have to wait 5 years from 1/1/21 to withdraw earnings without tax consequences, correct?
Also, if anyone would have other suggestions I might want to offer him in this case, that would be great!
Thanks!