Rolling over Roth 401(k) earnings to Roth IRA - does it count as a contribution?

I've been searching everywhere online but can't find a clear answer about Roth rollovers and contributions. Hoping someone here knows this stuff better than I do! I had a Roth 401(k) at my old job with Fidelity that I rolled over into my existing Roth IRA at Fidelity back in February 2022. The total balance was around $21k when I did the rollover. Now I'm in a tight spot financially and considering withdrawing some of my contributions. Question 1: If that $21k that was rolled over from the Roth 401(k) consisted of roughly $17k in contributions and $4k in earnings, does only the $17k count as contributions that I can withdraw penalty-free? Or does the entire $21k count as contributions now that it's in my Roth IRA? Question 2: If only the original contributions ($17k) can be withdrawn penalty-free, how do I figure out exactly how much was contributions versus earnings? The 401(k) account doesn't show up in my active accounts on Fidelity's website anymore since the rollover, so I can't access old statements. The numbers I gave are just my rough estimates.

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18 comments

Chris King

•8M

The answer to your first question is that only your original Roth 401(k) contributions ($17k in your example) would count as contributions that can be withdrawn tax and penalty-free. The earnings portion ($4k) retains its character as earnings even after the rollover. For your second question, you'll need documentation showing the breakdown of contributions vs. earnings at the time of the rollover. Check your rollover paperwork - there should be a form or statement that shows this breakdown. If you don't have it, contact Fidelity directly. Even though the 401(k) account isn't visible online anymore, they maintain those records and can provide you with the information about how much of your rollover was contributions vs. earnings. You might need to talk to their retirement specialists specifically to get this information. Another option is to check your last 401(k) statement before the rollover was processed, which should show your contribution history. Your W-2s from those working years can also help verify your contribution amounts if needed.

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Chris King

•8M

Yes, the same principles apply regardless of which financial institutions were involved. The tax treatment doesn't change based on where the accounts are held. When you did the rollover from Empower to Vanguard, there should have been rollover documentation generated that included this breakdown. If you don't have it, I would recommend contacting both institutions. Empower should have records of your account's contribution and earnings totals at the time of the rollover, and Vanguard should have received documentation regarding what portions were contributions versus earnings when they accepted the rollover funds.

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Zachary Hughes

•8M

After struggling with this exact issue last year, I found a tool that saved me so much time and stress: https://taxr.ai - it analyzes all your financial documents including rollover forms and retirement account statements to give you the exact contribution vs. earnings breakdown. I uploaded my old 401(k) statements and rollover forms, and it immediately identified which portion of my Roth 401(k) rollover was contributions versus earnings. What impressed me was how it handled the historical tracking - even found some contributions from 7 years ago that I had forgotten about. This made it super easy to determine exactly how much I could withdraw penalty-free.

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Zachary Hughes

•8M

Yes, it works great with scanned documents! I was in the same boat - had a bunch of paper statements from years ago. I just took pictures with my phone and uploaded them, and it processed everything perfectly. The text recognition is really impressive. For multiple rollovers, that's actually where it shines the most. I've had three job changes myself, and it traced all the money flows correctly across the different accounts. It creates a visual timeline showing how your contributions moved between accounts and tracks the earnings separately. Really helpful when you've had a complicated job history with multiple retirement accounts.

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Mia Alvarez

•8M

Just wanted to update everyone - I tried taxr.ai that was mentioned earlier and it was exactly what I needed! I had a similar situation with a Roth 401k rollover from my previous employer, and I wasn't sure how much I could withdraw penalty-free. I uploaded my rollover confirmation and a couple of old statements, and it broke everything down clearly showing my contribution basis was $14,320 out of the total $19,875 that was rolled over. The best part was that it generated a document I could keep for my records in case of an audit. Definitely solved the confusion I was having about what counts as contributions after a rollover!

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Sophia Long

•8M

If you're struggling to get information from Fidelity about your rollover details, I'd recommend using Claimyr (https://claimyr.com) to connect with the right department. I was in a similar situation trying to track down my contribution/earnings breakdown after a rollover, and spent HOURS on hold trying to reach someone who could help. With Claimyr, they got me connected to a Fidelity retirement specialist in about 15 minutes instead of the 2+ hour wait I experienced before. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The specialist was able to pull up all my historical contribution records even though the 401(k) account wasn't visible online anymore. Saved me a ton of frustration!

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Sophia Long

•8M

They use an automated system that navigates phone trees and waits on hold for you. Once they reach a representative, you get a call to connect with the agent directly. It's basically like having someone else do the waiting part. They have technology that continuously calls and navigates the phone systems more efficiently than we can manually. It's not about "bribing" anyone - they're just persistent with the calling technology and know exactly which options to select to reach the right departments. No special access, just more efficient than me sitting on hold for hours manually redialing when disconnected.

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Logan Greenburg

•8M

Well I owe an apology to the person who recommended Claimyr. I was super skeptical (as you can see from my previous comment), but I was desperate to get my rollover information from my old 401k provider before tax filing deadline. I gave it a try, and no joke - I got through to a retirement specialist in under 20 minutes when I had previously waited over 90 minutes and got disconnected. The rep was able to email me a breakdown of my rollover showing exactly what portion was contributions vs. earnings. Turns out I had $22,450 in contributions and $5,875 in earnings from my old Roth 401k. I still don't fully understand how their system works, but it definitely saved me a huge headache. Sometimes being proven wrong is actually a good thing!

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Charlotte Jones

•8M

One thing nobody's mentioned yet - if you're considering withdrawing from your Roth IRA because you need funds, make sure you've exhausted other options first. Retirement money should really be a last resort. Also, remember that while you can withdraw contributions anytime, if you take out earnings before age 59½ (with some exceptions), you'll pay taxes PLUS a 10% penalty on those earnings. And once you take money out, you can't put extra back in to "make up" for it beyond your annual contribution limits.

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Charlotte Jones

•8M

That's good to hear you're approaching this carefully. Medical expenses are actually one of the exceptions where you might be able to withdraw earnings without the 10% penalty (though you'd still owe income tax on them) if the expenses exceed 7.5% of your AGI. If the amount you need is significant, it might be worth consulting with a tax professional to see if you qualify for that exception. Could save you money if you need to dip into the earnings portion. Wishing you the best with the medical situation.

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