Prior to qualification upon reaching age 59½ and completing the 5-year qualification period, distributions from a Roth 401(k) are always a proportionate mix of nontaxable contributions and taxable gains. Taxable gains distributed before age 59½ are subject to a 10% early-distribution penalty unless an exception applies. If you are under age 59½ and eligible to take distributions from the Roth 401(k) due to having separated from service, you can roll the taxable gains over to a Roth IRA to avoid tax and penalty on the gains.
