My husband and I were discussing Roth IRAs and a question came up.
If you have an IRA through Vanguard and a portion of it is a rollover from a previous job's 401k, how do qualified distributions work?
Example:
In September, 2014, you have $10,000 in a Vanguard Roth IRA. The account has been open for more than 5 years and all contributions are at least 5 years old. Separately, you have $21,000 in a ROTH 401k through your job. You leave that job and roll over the 401k into your Vanguard Roth IRA. Is the rollover all considered contributions? Or is it considered earnings and you have to wait 5 years to withdraw it penalty free? Would you be able to withdraw the entire $31,000 or just the $10,000 that was originally in the account before the rollover?
This is hypothetical and we're not planning on withdrawing any money, I just can't seem to find the answer online.
Any input?