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Learning, Sharing, and Teaching => Investor Alley => Topic started by: zolotiyeruki on September 22, 2020, 08:27:03 AM

Title: Can Roth 401k contributions be withdrawn after a rollover to a Roth IRA?
Post by: zolotiyeruki on September 22, 2020, 08:27:03 AM
The thread title says it all--I'm trying to set myself up for a successful Roth ladder several years from now. I currently contribute to my 401k at work, but am thinking about adding some Roth 401k contributions as well.  Then, when I eventually FIRE, I'd roll the Roth 401k into my existing Roth IRA.

My question is this:  I know I can withdraw Roth IRA contributions after 5 years with no tax or penalty.  How does that apply to rolled-over funds from a Roth 401k?  Would I be able to withdraw the original Roth 401k contributions, after the 401k has rolled over to the Roth IRA?
Title: Re: Can Roth 401k contributions be withdrawn after a rollover to a Roth IRA?
Post by: EvenSteven on September 22, 2020, 08:54:23 AM
A recent thread that may be of use:

https://forum.mrmoneymustache.com/taxes/question-about-using-roth401k-dollars/msg2680730/#msg2680730
Title: Re: Can Roth 401k contributions be withdrawn after a rollover to a Roth IRA?
Post by: zolotiyeruki on September 22, 2020, 09:25:44 AM
That's precisely what I was looking for!  Thanks--my google-fu was failing me.
Title: Re: Can Roth 401k contributions be withdrawn after a rollover to a Roth IRA?
Post by: seattlecyclone on September 22, 2020, 12:53:46 PM
I know I can withdraw Roth IRA contributions after 5 years with no tax or penalty.

No need to wait five years. You can take your contributions out the next week and pay no tax on them.
Title: Re: Can Roth 401k contributions be withdrawn after a rollover to a Roth IRA?
Post by: zolotiyeruki on September 22, 2020, 03:14:01 PM
I know I can withdraw Roth IRA contributions after 5 years with no tax or penalty.

No need to wait five years. You can take your contributions out the next week and pay no tax on them.
You're right--I was thinking of Roth conversions.