Get your taxes done using TurboTax

When you withdraw from the Roth IRA, your first withdrawals are from your original contributions. Then your rollovers. Lastly, your earnings.  You can withdraw your original contributions tax free. You can also withdraw the rollover amount from march 2023 tax free. (You do not have to account for whether the rollover is from contributions or earnings.)  If you withdraw the earnings, they will be subject to income tax, since the account is less than five years old.

 

Whether you should have done something differently is a bit irrelevant at this point. If you want to cash out all of your Roth investments today, the only taxable amount that you would not have had if you had cashed out the Roth 401(k) directly, is any earnings in the Roth IRA between March 2023 and July 2023.

 

If you simply want to begin making regular withdrawals to support your retirement, they will be tax free, unless you withdraw so much that you dig into the earnings before January 2025.