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Learning, Sharing, and Teaching => Investor Alley => Topic started by: jmras5 on April 26, 2019, 06:00:55 AM

Title: Roth IRA Distribution from Roth 401k rollover
Post by: jmras5 on April 26, 2019, 06:00:55 AM

I rolled money into my Roth IRA from my work Roth 401k. I rolled only the Roth contributions I made into my Roth IRA and any employer contributions and gains were rolled into my new work 401k. Is the money I rolled over into my Roth IRA treated as just a normal contribution? Curious if that money is eligible to be taken out without penalty or not? The Roth was started only 3 years ago if that matters...

Title: Re: Roth IRA Distribution from Roth 401k rollover
Post by: wbarnett on May 02, 2019, 10:15:43 AM

Edited.

Original reply:
So you only rolled your Roth 401k contributions into a Roth IRA? As long as the rollover doesn't include earnings, you should be able to withdraw your contributions from the Roth IRA anytime without penalty. The 5-year rule only applies to distributions of earnings, I believe.

Edits:
This thread (https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/) indicates that I am wrong. It looks like the 5-year rule applies to any Roth IRA conversion, even if it is post-tax money from a Roth 401k.