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I transferred my Roth 401k to Roth IRA 3-4 years back. My first Roth IRA was open a decade ago. Can I withdraw contributions without penalty?

Or do I need to wait 5 years from the initial transfer (Roth 401k) for the withdrawal?

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5uears I believe, but I'm more interested to know reason for withdrawal, its tempting but scary.

IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.

raringvt said:   IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.. what! You are saying you can withdraw your contributions tax free and without penalty, anytime!

JaxFL said:   raringvt said:   IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.. what! You are saying you can withdraw your contributions tax free and without penalty, anytime!

Yes. That's why a lot of people put their emergency funds into Roth IRAs. They can invest it, gain some earnings on it, but the money is immediately available should the need arise.

nvm you're right it's not a conversion

mooingmooseman said:   AFAIK it's not true for conversions-- conversions have a 5 year requirement.
Lest others be confused, a situation like OP's is not a conversion. A rollover from a Roth 401k to a Roth IRA doesn't trigger any conversion-related requirements.

I'm using it as down payment toward a house. Always planned to do it, never realized how important contribution tracking was.

welookgoodcom said:   I'm using it as down payment toward a house. Always planned to do it, never realized how important contribution tracking was.. I was told there is an irs form that you can request that info... if you find it please post for others.

jaytrader said:   JaxFL said:   raringvt said:   IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.. what! You are saying you can withdraw your contributions tax free and without penalty, anytime!

Yes. That's why a lot of people put their emergency funds into Roth IRAs. They can invest it, gain some earnings on it, but the money is immediately available should the need arise.


And there is HEELLOO giving me red on a very important fact that everyone who reads this thread could benefit from, because they have a chip on their shoulder. I am here to publicly tell you to get a life. Anyone who reds someone that provides very pertinent information is just acting like an idiot. I am not posting this to be arrogant, either. Many people don't know one of the very beneficial traits of a Roth IRA.

/rant and back to your regularly scheduled thread

welookgoodcom said:   I'm using it as down payment toward a house. Always planned to do it, never realized how important contribution tracking was.Anybody with relevant experience know how that works in practice?

Does the IRS expect you to be able to substantiate your contributions via decades of Form 5498s, brokerage statements, or is this info they can provide for you (seeing as how the IRS would have received all the same Form 5498s as you)?

raringvt said:   IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.

Confirming this info for the OP. For greater discussion, see: http://www.investopedia.com/articles/retirement/09/roth-401k-rol...

Yes, you can take out contributions without tax or penalty. You do not have to wait five years. However, what is a contribution may need some clarification.

When you move your Roth 401k to your Roth IRA, the basis of your Roth 401k stays the same. The earnings in the Roth 401k are not considered contributions to your Roth IRA, they are earnings and cannot be taken out tax-free or penalty free until you are able to take out a qualified distribution.

The good news for you is since your account has been opened five years, if you take earnings out and use those earnings for a first-time home purchase, this is considered a qualified distribution and will be tax-free and penalty-free, subject to a lifetime limit of $10,000.

jaytrader said:   jaytrader said:   JaxFL said:   raringvt said:   IIRC, the holding period of your Roth 401k doesn't matter--it takes on the holding period of the Roth IRA which you rolled it into. Did you roll it into the same Roth IRA that you opened 10 years ago? If so, I believe you will be able to take distributions free from tax & penalty. Remember, you can always withdraw contributions tax & penalty free...it's earnings you have to meet age or holding period requirements for.. what! You are saying you can withdraw your contributions tax free and without penalty, anytime!

Yes. That's why a lot of people put their emergency funds into Roth IRAs. They can invest it, gain some earnings on it, but the money is immediately available should the need arise.


And there is HEELLOO giving me red on a very important fact that everyone who reads this thread could benefit from, because they have a chip on their shoulder. I am here to publicly tell you to get a life. Anyone who reds someone that provides very pertinent information is just acting like an idiot. I am not posting this to be arrogant, either. Many people don't know one of the very beneficial traits of a Roth IRA.

/rant and back to your regularly scheduled thread

Ah, you've met your version of what UtahDealSeeker is for me. You've met your FW stalker. That person who eagerly checks and searches the site every day, just waiting for you to post something, so they can red it and feel they have added a bit of meaning to their life.

Can anyone who specializes in taxes confirm that Roth 401k contribution basis from a rollover is pooled with Roth IRA contribution basis and available first (Roth distribution ordering rules)?

I ask because I was reviewing Roth 401k distribution rules (taken as cash directly from the 401k) and saw Roth 401k distributions are done pro-rata between earnings/contribution basis (same way a Trad IRA with non-deductible contributions + earnings is distributed).

While Roth IRA distributions have ordering rules for contribution basis first, Roth 401k distributions are done pro-rata basis/earnings... so does the rollover from a Roth 401k circumvent the IRS rule on pro-rata distributions from Roth 401Ks? Or is there separate basis/tracking rules for Roth 401k contribution basis that is rolled in?

I cannot find very clear documentation from the IRS publications/FAQs on this matter.



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