hello everyone, I have searched but havent found an answer to my question so I thought I would ask here.

I know contributions to a roth IRA can generally be withdrawn without penalties or tax. My question is does this apply only to the annual $6,000 regular contributions? what about a 401k rollover or Traditional IRA conversations? would the entire 401k or TIRA balance at the time of conversion be considered contributions that could later be withdrawn tax and penalty free? Just to clarify I'm talking about early withdrawal (before 59.5). Also Im not considering raiding my 401k/ira just like knowing all my options. thanks

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Posted by Epic Cajun

Lafayette, LA

Member since Feb 2013

32807 posts

Posted on 6/19/19 at 11:50 am to Gator feather

quote:
My question is does this apply only to the annual $6,000 regular contributions? what about a 401k rollover or Traditional IRA conversations? would the entire 401k or TIRA balance at the time of conversion be considered contributions that could later be withdrawn tax and penalty free?

You would pay taxes on the 401k/TIRA at the time of conversion to a Roth, or at least that is my understanding.

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Posted by yatesdog38

in your head rent free

Member since Sep 2013

12737 posts

Posted on 6/19/19 at 12:19 pm to Gator feather

10% penalty unless you've had the Roth 5 years. Only contributions can be withdrawn none of the earnings before 59 1/2. A roth conversion will not face a penalty but you will be taxed on it because those were pretax dollars. You can do a conversion once a year. Something to consider if you are doing a conversion is if the added income will boost you into the next tax bracket. If so you might want to split it up over a couple of years. This is what is called backdooring a roth. well kinda. most people backdoor a roth because they make more than allowable to contribute

basic info

This post was edited on 6/19/19 at 12:20 pm

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