In-Plan Roth Accounts

[mming]

I should know this, but not today for some reason.  If I recall, an amount distributed from an In-Plan Roth account (that was converted within the plan from a pre-tax deferral account) can be withdrawn on a tax-free basis if the Roth account was established at least 5 years ago, regardless of whether or not some of the distributed money sat in the account that long (and, of course, if the participant is at least 59.5 years old). 

Also, if the participant dies before a distribution can be made, their beneficiary can be paid the Roth amount on a tax-free basis, with the same choices in payout methods as a pre-tax deferral account, unless the doc specifies different methods by source.

Do I have both statements right?  All help is appreciated.  

 

[Bill Presson]

Each Roth conversion in a qualified plan has its own 5 year clock. It does not work like a Roth IRA. 

[Artie M]

On your second question... if a P dies, a distribution from their designated Roth account to the Bene will be a qualified tax free distribution if the P’s applicable 5-year period has been satisfied. If it hasn't, the portion attributable to basis is tax-free, but the portion attributable to earnings is taxable. The available forms and timing of payment are determined by the plan's terms, including §401(a)(9)... also, they may or may not be the same as those applicable to the P’s pre-tax account.