To answer your questions, rolling over a Roth 401(k) to a Roth IRA is not considered to be a contribution or conversion; it is considered a rollover.
Under the ordering rules, the contribution basis comes out first and is tax and penalty free. If you are at least 59 ½ and the Roth IRA has been open for five years, any regular distributions from your Roth IRA will be tax and penalty free.
Funds from a traditional 401(k) rolled into a Roth IRA are considered a taxable rollover as opposed to a Roth conversion. Roth conversion only applies to traditional IRAs to a Roth IRA.
Here is a link to an Intuit blog that discusses Roth IRA Withdrawal Rules and Penalties.
Thank you for joining us at the Ask the Expert event today!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
