roth 401k
I have a client who made contributions into a Roth 401k with a prior employer and rolled into a Roth with a fund company. If they make a withdrawal of the original basis would it not be subject to the 10% penalty.
I have a client who made contributions into a Roth 401k with a prior employer and rolled into a Roth with a fund company. If they make a withdrawal of the original basis would it not be subject to the 10% penalty.
Permalink Submitted by Alan - IRA critic on Mon, 2022-04-25 16:43
There would not be a penalty unless you did an in plan Roth rollover of pre tax amounts in your 401k in the last 5 years. The amount of your Roth IRA distribution allocated to the taxable portion of the in plan Roth rollover would be subject to penalty. If you did not do any in plan Roth rollovers or if you are over 59.5, there is no penalty.