Roth 401k to Roth IRA Withdrawal of Principal Rules - Can I Access My Contributions?

5 So to be clear, once I do the rollover, I can immediately withdraw the amount I originally contributed without any taxes or waiting period? And only the growth has the 5-year waiting period? I've been so confused about this because my HR department wasn't helpful at all.

8 Yes, that's correct. Once you roll your Roth 401(k) into a Roth IRA, you can withdraw your original contributions at any time without taxes or penalties. There's no waiting period for accessing your contributions. For the earnings portion, you would need to satisfy both requirements to avoid taxes and penalties: be at least 59½ years old AND have the first Roth IRA established for at least 5 tax years. The 5-year clock starts with your first Roth IRA contribution, not from the date of the rollover.

17 Does this tool work for figuring out Traditional 401k to Roth IRA conversions too? I've been considering doing a backdoor Roth and the tax implications are making my head spin.

2 I'm a bit skeptical about these online tools. How accurate was it? Did you find any discrepancies between what it told you and what actually happened when you did your rollover?

11 Yes, it absolutely works for Traditional 401k to Roth IRA conversions too! It shows you the expected tax hit in the year of conversion and then maps out the 5-year waiting periods for each conversion amount. Super helpful for backdoor Roth planning. The tool was incredibly accurate in my experience. I had my accountant verify the calculations, and they matched exactly what taxr.ai predicted. The platform uses the actual IRS rules and publications to analyze your specific situation, not just generic advice.

23 Wait, you actually got through to a real IRS person? I've tried calling for days and always get the "call volume too high" message. How does this service actually work? Seems too good to be true.

2 I'm really skeptical. Why would I pay a service when I can just call the IRS myself? And how do I know the information they provide is accurate? The IRS has been known to give incorrect information over the phone.

14 Yep, I connected with an actual IRS representative who was able to walk through my specific situation. They work by basically navigating the phone system and waiting on hold for you - when they reach a human, they call you and connect you directly to the agent. I understand the skepticism - I felt the same way initially. But after spending 6+ hours over 3 days trying to get through myself, the time saved was worth it. As for accuracy, I requested that the agent reference specific IRS publications related to my rollover question, and they cited Publication 590-B which details the withdrawal rules. I also recorded the call (with permission) for my records.

19 What about employer match funds in the Roth 401k? Are those considered contributions or earnings when rolled to a Roth IRA? My employer contributes 5% to my Roth 401k.

7 Employer match funds are actually contributed pre-tax, so they go into the Traditional portion of your 401k, not the Roth portion. When you roll over, these funds would need to go to a Traditional IRA (or you'd pay taxes converting them to Roth). For your Roth rollover, only your personal after-tax contributions and their earnings would move to the Roth IRA. And after the rollover, only your personal contributions would be immediately available without penalties - the earnings would still need to satisfy the age and 5-year requirements.

4 Not everyone has the luxury of a huge emergency fund. Life happens. Better to have the option to access Roth contributions than rack up credit card debt or take a 401k loan that becomes due immediately if you lose your job.

This is exactly the clarity I needed! Thank you for breaking down the direct rollover requirement - I hadn't considered that detail. One follow-up question: if I already have a small Roth IRA that I opened 3 years ago with just $1000, does that mean my 5-year clock for earnings is already running? Or does each rollover/conversion start its own separate 5-year period? Also, you're absolutely right about the compound growth. I'm not planning to touch it unless it's a true emergency, but knowing I have that flexibility makes me feel much more comfortable about having so much tied up in retirement accounts at my age.

Great question about the 5-year clocks! Since you already have a Roth IRA that's 3 years old, you're in good shape. For the earnings portion of your existing Roth IRA, you only need to wait 2 more years (until the 5-year mark) to withdraw earnings penalty-free after age 59½. However, for rollover funds, there's a separate 5-year rule that applies. Each rollover from a Roth 401k starts its own 5-year clock for penalty-free access to the earnings portion of that specific rollover. But here's the key point - your CONTRIBUTIONS from the rollover can be accessed immediately without any waiting period, just like regular Roth IRA contributions. So in your case: contributions (both existing and from rollover) = accessible anytime, earnings from existing Roth IRA = accessible penalty-free in 2 more years, earnings from the rollover = new 5-year clock starts. You're being smart by keeping this as emergency-only access. The flexibility is valuable for peace of mind, especially when you're building wealth in your 30s and might face unexpected expenses like home repairs, medical bills, or job transitions.

Excellent question about tracking! When you do a direct rollover, your receiving financial institution (like Fidelity, Vanguard, etc.) should provide you with documentation showing the breakdown of contributions vs. earnings from the rollover. They're required to track this for tax reporting purposes. You'll typically receive a Form 5498 that shows your rollover contributions, and most brokers have online portals where you can see your contribution basis clearly separated from earnings. I'd recommend taking screenshots or keeping records of these statements right after the rollover for your own peace of mind. Pro tip: When you eventually make withdrawals, the IRS requires you to report them on Form 8606 if any portion consists of earnings. The financial institution will send you a 1099-R, but it's your responsibility to correctly report whether the withdrawal was from contributions (tax-free) or earnings (potentially taxable/penalized). And yes, definitely check for rollover fees! Some 401k providers charge $50-100 for processing rollovers. Also ask about any restrictions on partial rollovers if you only want to move a portion of your balance initially.

This is such a comprehensive discussion! I'm completely new to understanding retirement accounts and this thread has been a goldmine of information. I've been putting money into my employer's Roth 401k for about a year now, but honestly had no clue about any of these withdrawal rules or differences between account types. The timing tip about completing rollovers early in the tax year is really smart - I hadn't thought about how that could simplify tracking throughout the year. And it's reassuring to hear that the major brokerages have good tools for tracking contribution basis vs. earnings. As someone just starting out with retirement planning, should I be concerned about having "too much" accessibility to my retirement funds? I like the idea of having that emergency access, but I'm also worried I might be tempted to use it when I shouldn't. Is there a recommended strategy for balancing emergency fund savings vs. maxing out retirement contributions when you're younger?