Roth 401(k) -> Roth IRA Question

[RabStache]

I recently switched companies and moved money from a Roth 401(k) (2 years old) to a Roth IRA (Newly created).

My Roth 401(k) had ~$5000 of contribution and ~$800 of growth.

3 questions:

• When would I be able to withdraw the money moved to the Roth IRA?
• How much?  $5000 or $5800?
• When would I be able to withdraw new contributions to the Roth IRA?  5 years?  Immediately?

I know that opening a Roth IRA and contributing normally you would be able to withdraw all contributions after 5 years of the account being open but I'm unsure if there are different rules for rollovers. 

[fartface]

First of all  - DON'T DO IT.

However, IF you must pull it out you have to wait five years and then can only pull out contributions - not gains.

My husband started his Roth in 1997 with $8400 (rolled over his former employers 401k balance and paid income tax on it).

Fast forward to 2010. We bought a house and w/drew $8000 for the down payment. I REALLY regret that decision.

On the bright it has continued to gain, pay dividends, and we'll max out contributions to it for the 3rd year straight next month.

Current value = $40,000.

Bottom line if can find another way to access cash  - do it - don't take $$$ from your Roth!!!

[RabStache]

Sorry I should have clarified.  I am not looking to pull the money out.  I am merely curious how the rules work and if there is a difference between rollovers and contributions.  I was also wondering about the rollover amount (gain + contribution).

Based on your comments I am assuming the following to my questions:

3 questions:

• When would I be able to withdraw the money moved to the Roth IRA? - 5 more years
• How much?  $5000 or $5800? - $5000
• When would I be able to withdraw new contributions to the Roth IRA?  5 years?  Immediately? - 5 more years

I had read somewhere that with a rollover you could withdraw from the IRA immediately but I could be mistaken.

[Calvawt]

you can withdrawal any Roth IRA contributions at any time without penalty (though of course no one wants to do that!).  the gains cannot be taken until age 59.5 without paying taxes and a penalty.  I think the Roth 401k rules are the same, but I am not positive.

[johnny847]

From the first Google search result: http://www.investopedia.com/articles/retirement/09/roth-401k-rollover.asp

From Roth 401(k) to IRA
If the rollover is to a Roth IRA instead, the holding period within the Roth 401(k) does not carry over. That is, if the client has an existing Roth IRA, once the Roth 401(k) distribution is in the account, it has the same holding period as the Roth IRA funds. For example, let's assume that the Roth IRA was opened in 2000. You worked at your employer from 2006-2009 and were then let go or quit. Because the Roth IRA that you are rolling the funds into has been in existence for more than five years, the full distribution rolled into the Roth IRA meets the five-year rule for qualified distributions. On the other hand, if you did not have an existing Roth IRA and had to establish one for purposes of the rollover, the five-year period begins the year the Roth IRA was opened, regardless of how long you have been contributing to the Roth 401(k).

Google is great. Just use it.

[RabStache]

I've been getting mixed responses and am now more confused than when I initially asked the question.  Let me rephrase:

Year 1: $5,000 Roth 401(k) contributions
Year 2: $800 Roth 401(k) gains
Year 3 (Switch Company): Move $5,800 from Roth 401(k) to newly created Roth IRA at Vanguard
Year 3: Roth IRA has $5,800 rollover and $700 in gains ($6,500)

What dollar amount can be withdrawn from this Roth IRA today tax/penalty free if I so desired?

[Mazzinator]

Sorry I should have clarified.  I am not looking to pull the money out.  I am merely curious how the rules work and if there is a difference between rollovers and contributions.  I was also wondering about the rollover amount (gain + contribution).

Based on your comments I am assuming the following to my questions:

3 questions:

• When would I be able to withdraw the money moved to the Roth IRA? - 5 more years
• How much?  $5000 or $5800? - $5000
• When would I be able to withdraw new contributions to the Roth IRA?  5 years?  Immediately? - 5 more years

I had read somewhere that with a rollover you could withdraw from the IRA immediately but I could be mistaken.

1. Yes, 5 more years. Because you opened the roth ira in 2014.
2. Yes, 5000 worth of contributions
3. No. Any "new" contributions made directly into the roth ira can be withdrawn immediately.