Hi @dmertz, could I ask a slight variation of this same example?
In 2021, I stopped working at a company and had accumulated the following accounts:
Roth 401k (post-tax): $10k personal contributions, $3k earnings and no employer match
Traditional 401k (pretax): $5k employer matching contributions, $2k earnings, +$1k personal contributions
Keeping money with employer 401k, I converted the traditional portion into Roth401k in 2023. Assume earnings remained at 2k for easy math. So I paid income taxes on $8k in 2023.
Now in 2025 I am converting the Roth401k to a RothIRA with amount of $24k: $10k contributions, $8k "rollover/conversion?", $6k earnings.
Here would be my questions:
1. Is the 8k portion from 2023 a conversion? Is it available penalty free in 2028, or was the clock reset in 2025?
2. If I wait until 2030 and try to withdraw $24k, what portions could be withdrawn penalty free?
Thank you in advance,
