Roth 401k to Roth IRA contribution withdrawal

[Thatmissouriguy]

Just about to submit my return but thought I'd verify with turbotax before I do.

I rolled over $20k  into my roth ira in 2019.

$13,500 of this was my roth 401k contributions.

I withdrew 71,000 in 2024 from my roth ira. I contributed 61,000 directly in the roth ira.

(61,000+13,500)> 71,000 which means I don't have to pay any taxes on this correct?

My understanding is when you withdraw directly from roth 401k then it's a pro rota withdrawal.

But if you rollover to roth ira and then withdraw then it's penalty and tax free correct? Thank you for any help.

side note: Will I hear back from the irs at all further on this or provide anymore info to irs? I have my 1099r from 2019 showing my roth 401k contributions and also have all my contributions directly into my roth ira saved in my brokerage's website history.

[ThomasM125]

Any money that you withdraw from a Roth IRA will be not be taxed unless it is an early distribution. In that case, only the earnings withdrawn would be taxable. So, if you had the Roth IRA for five years before you took the distribution and you were over 59 1/2 years old when you took the distribution, none of it would be taxable.

Furthermore, from what you said there were not earnings in the account, so there would be no tax for that reason as well.

No one can know if the IRS will inquire about the entries, but if you keep documentation supporting what you explained here you should be OK.

[dmertz]

You are correct.  Once rolled over the Roth IRA, distributions are governed by Roth IRA ordering rules, not the 401(k) pro rata requirement.