ROTH IRA Distribution Taxed?

[loren_martell]

I had a ROTH IRA in my employer 401k that was contributed to with after tax dollars from my paycheck.

I held the ROTH for 5 years ( started 2019, withdrew in 2024 ).

Why am I getting taxed on the distribution from this ROTH IRA?

[dmertz · Accepted solution]

The Roth account in your 401(k) is not a Roth IRA.

For distributions from the designated Roth account in your 401(k) to be entirely nontaxable, the distribution must be made after the 5-year holding period has been completed and after you have reached age 59½ (or are disabled).  The Form 1099-R reporting the distribution from a designated Roth account will have code B in box 7 (perhaps accompanied by code 1 or code 7) and should show the correct taxable amount in box 2a.