@dmertz wrote:
Unless the distribution is a qualified distribution, which is presumably not the case here, distributions from a Roth 401(k) are a proportionate mix of nontaxable contributions and taxable earnings. Distributions from a Roth 401(k) do not follow the ordering rules for Roth IRAs.
Fudge, I always miss that part.
So the taxpayer will pay income tax on part of the withdrawal, depending on the mix of contributions and earnings. The plan trustee should be able to help you figure that out. There is no 10% penalty if you certify that the distribution was COVID related.
