dmertz
Level 15

Retirement tax questions

In Scenario 2, any amount rolled over to the Roth IRA would be taxable because there is no after-tax basis in the 401(k).  Scenario 1 none of the rollover to the Roth IRA would be taxable.  Whether or not distributions from the Roth IRA would be taxable would depend on your age, the year for which you first made a Roth IRA contribution (including a rollover) and whether or not the Roth account in the 401(k) was qualified at the time of the rollover.  You mentioned a 401(k) contribution limit of $61,000 for 2022, so you are apparently under age 59½ and neither the Roth account in the 401(k) nor the Roth IRA would be qualified yet.

 

Nothing from the Roth account in a 401(k) is permitted to be rolled over to a traditional IRA, nor would you want to.