If I pay back 2024 roth ira withdrawals before 4/15/25 would my taxable go to 0

[Opus 17]

No.  You can repay a distribution within 60 days (this is considered a rollover, whether you put the money into a new plan or return it to the old plan).  After 60 days, you can't return it and it is taxable income. 

[Opus 17]

...However, Roth IRA withdrawals are not taxable over age 59-1/2 in most cases, and under 59-1/2 are only taxable if you withdraw earnings.  withdrawal of contributions is always tax-free.  Are you sure your withdrawal is taxable?

[ianh12]

Unfortunately it's taxable since rolling over previous employer's Roth 401k to a Roth IRA resets the 5 year start date.  I found this out too late.

[Opus 17]

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@ianh12 wrote:

Unfortunately it's taxable since rolling over previous employer's Roth 401k to a Roth IRA resets the 5 year start date.  I found this out too late.

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Even then, only earnings are taxable.  The entire amount should not be.  @dmertz 

[ianh12]

Roth IRA withdrawals within the 5 years of rollover date are taxable with a few exceptions which I don't qualify.  So the amount is taxed twice.

[dmertz]

No, it's not taxed twice.  If not not a qualified distribution from the Roth account and not rolled over, only the earnings distributed are taxed and subject to potential early-distribution penalty.  Your contribution basis is not taxed upon distribution.

[Opus 17]

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@dmertz wrote:

No, it's not taxed twice.  If not not a qualified distribution from the Roth account and not rolled over, only the earnings distributed are taxed and subject to potential early-distribution penalty.  Your contribution basis is not taxed upon distribution.

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@dmertz , if you rollover a Roth 401k into a Roth IRA, is your basis the amount of the rollover, or the amount of the original contributions to the 401k not including gains?  I assume it is the latter?

@ianh12  If you know (or can find out) the amount of original contributions to your Roth-designated 401k, then part or all of your current withdrawal will be tax-free even if it is within the first 5 years. 

[dmertz]

"if you rollover a Roth 401k into a Roth IRA, is your basis the amount of the rollover, or the amount of the original contributions to the 401k not including gains?"

It depends.  If the distribution from the Roth 401(k) would be a treated as a qualified distribution if not rolled over, the entire gross amount of the distribution becomes contribution basis in the Roth IRA.  Otherwise, only the basis from the Roth 401(k) becomes basis in the Roth IRA.  The amount of basis that transfers to the Roth IRA should be reflected in box 5 of the code-H Form 1099-R.

[ianh12]

The income used to fund my previous employers Roth 401k (established around 2010) was taxed.  I rolled over the Roth 401k  into a Roth IRA.  The rollover triggered a reset of the 5 year rule.  Earnings in a Roth IRA may only be withdrawn tax-free when at least five years have passed between these two dates:

Jan. 1 of the tax year you first contributed to a Roth IRA and the the date of the withdrawal.   The rollover triggered a reset of the 5 year rule.  At least I avoided the 10% penalty, because I'm over 59½ years old.

[Opus 17 · Accepted solution]

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@ianh12 wrote:

The income used to fund my previous employers Roth 401k (established around 2010) was taxed.  I rolled over the Roth 401k  into a Roth IRA.  The rollover triggered a reset of the 5 year rule.  Earnings in a Roth IRA may only be withdrawn tax-free when at least five years have passed between these two dates:

Jan. 1 of the tax year you first contributed to a Roth IRA and the the date of the withdrawal.   The rollover triggered a reset of the 5 year rule.  At least I avoided the 10% penalty, because I'm over 59½ years old.

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I'm glad you are happy to ignore advice and pay extra income tax.

For everyone else who might read this, your Roth IRA is not automatically taxable even if it is less than 5 years.  Yes, the Roth IRA has a different clock than the 401k, but you still have a basis in the Roth 401k equal to the after-tax contributions you made while you were employed, and withdrawal of your contribution basis is always tax-free, even under 5 years.  

The amount of your basis should be recorded on the 1099-R from the rollover from the 401k to the IRA in box 5. (Not the current withdrawal, but the 1099-R from the rollover.) Your contributions will also be on your pay stubs, your W-2s (box 12 code AA) and form 5498 from the 401k. 

For example,  if you contributed $50,000 over the years to the 401k, that basis rolls over and counts as contribution basis in the Roth IRA.  Therefore your first $50,000 of withdrawals from the Roth IRA would be tax-free even if you are less than 5 years into the Roth IRA.  

[ianh12]

Thanks.  Definitely filing an amended return.