Retirement tax questions

Hi!

Thanks for your previous explanation — I have a couple of follow-up questions for clarification:

1. Regarding Roth 401(k):

   • For RAs, I understand there’s a distinction between qualified distributions (account ≥5 years + age ≥59½, including earnings) and non-qualified distributions. Qualified distributions are non-taxed. And non-qualified distributions haveRA Ordinary income tax + 10% penalty (unless exception) 

   • For NRAs, it seems qualified distributions are non-taxed. Could you clarify how non-qualified distributions are treated for NRAs? For example, if I withdraw the full balance before age 59½, how would earnings and contributions be taxed or withheld?

    

2. Regarding my Traditional 401(k) after leaving my company:

   • I understand I need to roll it over to an IRA.

   • Would it make sense to convert to a Roth IRA while I’m still an RA (paying income tax now) versus leaving it as a Traditional IRA?

   • I understand that as an RA, the tax on conversion would be at my ordinary income rate, which may be lower than the 30% withholding that applies if I withdraw as an NRA later. Could you provide guidance on which approach is generally more tax-efficient, especially if I expect to become an NRA in the future?

Thanks so much for your insights!