After tax contributions rolled over to Roth IRA
I am 58 years old and rolled after tax 401k contributions from a previous employer to a Roth IRA in March 2017. I am currently employed and need to withdraw some of the contribution from the Roth account tax free. I researched the IRS rules and it appears I am not subject to the 5 year or any age restriction that apply to tax free withdrawals. Are there any other rules that may apply? The pre tax contributions were rolled over to a traditional IRA. Thanks Jon
Permalink Submitted by Alan - IRA critic on Wed, 2017-10-11 21:50
If your only Roth IRA balance is from this rollover, any distributions you take will be non taxable and not subject to any penalty because the 5 year 10% penalty only applies to the taxable portion of the rollover and none of your rollover was taxable. In addition, since you would only withdraw less than the amount of the rollover there will be no earnings included in your distribution that would have been taxable.