Accessing Roth 403(b) contributions before age 59½

[dock28]

My wife and I are saving up 5+ years of living expenses so that we can eventually live off those funds while we execute a Roth conversion ladder before we’re 59½. We’ve been saving most of this into a taxable brokerage account and a high yield savings account, and we each have a Roth IRA, so I assume the contributions we've made to those accounts could also be used for our living expenses fund.

My wife also contributes to a Roth 403(b) through her employer, and I’m wondering whether those contributions could also be used for our living expenses fund. I’m pretty sure she currently can’t access the contributions before age 59½ without penalty. However, if she leaves her job, could she roll those Roth 403(b) funds into her existing Roth IRA and then withdraw the contributions and/or earnings before age 59½ without penalty?

[seattlecyclone]

If I recall correctly a Roth 403(b) works the same as a Roth 401(k). Withdrawals of the contributions are not penalized, but the catch is that any withdrawal directly from one of these workplace accounts is prorated between contributions and earnings, so part of your withdrawal would come out of the earnings bucket and would be taxed. The workaround is as you say: roll it into your Roth IRA where the withdrawal rules don't prorate between contributions vs. earnings and instead allocate your entire withdrawal to the contributions.