Rollover Dist: Non-Roth to Roth

A single member plan (62yo participant)  wants to take a distribution from his plan, pay the taxes outside the plan and put the total rollover into a Roth IRA.  Can that happen?

Yes. See the IRS rollover chart for reference: https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

They could also potentially do an in-plan Roth conversion instead, which would avoid the need to actually distribute any money from the plan.

He's thinking the plan may close before the 5 years is up.  May just be easier to keep the money outside the plan 

Thank you for the link.  

5 year rule - 

The Mega Roth scheme where a participant puts in a voluntary contribution and then converts to ROTH immediately starts a 5 year period.  For this guy, because the money has been in the plan for more than 5 years already, when it converts to Roth will he have a 5 year rule attached to that money?    

9 hours ago, Basically said:

For this guy, because the money has been in the plan for more than 5 years already, when it converts to Roth will he have a 5 year rule attached to that money?    

5 year clock starts the year the first Roth contribution and/or conversion is made in the 401k. Keep in mind if he satisfies the 5 year rule in the 401k, then rolls to a brand new/newly opened Roth IRA, the 5 year clock starts over. 

My understanding is he has a Roth IRA.  If he satisfies the 5 year rule in the plan and rolls the Roth money into an existing Roth IRA then he is all set.
Honest, doesn't make sense to me a new clock would be started if he rolled Roth money out of a plan into a new Roth IRA... It's Roth already.  Oh well.

Knowing that he may close the plan soon (within 5 years) he would be better off taking a distribution and converting it to Roth outside the plan.  Start the clock outside the plan so he doesn't have to re-start the clock.  Make sense?