dmertz
Level 15

Retirement tax questions

A distribution from a Roth 401(k) is a proportionate mix of nontaxable contributions and taxable gains.  If you are an individual qualified to receive a Coronavirus-Related Distribution, the taxable income can optionally be spread over 3 years and is exempt from any early-distribution penalty.  Otherwise the taxable amount of the distribution is subject to income tax and, unless a regular exception applies, to an early-distribution penalty.