- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
"Any Roth Contributions (Not earnings) whether 401k or IRA or 401k rolled into IRA are all available to be withdraw without any penalty or taxes?"
It depends.
If you have met that age 59½ and 5-year requirements for qualified Roth IRA distributions, any regular (and there for normal) distribution from your Roth IRAs are free of tax and penalty.
If you have not reached age 59½, the amounts of your contributions, conversion and earnings in your Roth 401(k) retain the same nature and add to the corresponding amounts in your Roth IRAs.
If you have met the age 59½ and 5-year requirements for qualified distributions from the Roth 401(k) but have not yet met the 5-year requirement for qualified distributions from your Roth IRAs, the entire amount rolled over to the Roth IRA from the Roth 401(k) becomes contribution basis in your Roth IRAs. In this case, only earnings accrued in your Roth IRAs would be subject to taxes, but not penalty, if distributed before you become eligible for qualified distributions from your Roth IRAs. These earnings come out last.