Timeline for Split Roth 401(k) Rollover between Traditional IRA and Roth IRA

7 events

when toggle format	what		by	license	comment
Apr 17, 2018 at 9:49	history	edited	JTP - Apologise to Monica♦	CC BY-SA 3.0	added 2 characters in body; edited title
Apr 25, 2016 at 19:30	vote	accept	arcyqwerty
Apr 25, 2016 at 5:24	answer	added	user102008		timeline score: 3
Aug 30, 2015 at 14:36	comment	added	arcyqwerty		Well suppose, hypothetically, that I have 15,000 in a Roth 401k, 10000 of which is basis and 5000 of which is earnings. My understanding is that if I were to roll that into a new Roth IRA, any distribution that I take would include the taxable portion (5000), subject to taxes + penalty, before the nontaxable portion (10000). For example, if I withdraw 1000 from the new Roth IRA, that would be subject to income tax + 10% penalty whereas if the earnings were sent to the traditional IRA and only the 10000 basis were in the Roth IRA, that 1000 would be tax and penalty free.
Aug 30, 2015 at 2:11	comment	added	Dilip Sarwate		The question should be why you would want to do such a split? When a distribution occurs from a Roth IRA, the original contributions come out first, and only when they are exhausted do the earnings come out. So, rolling over the earnings in a Roth 401k into a Traditional IRA (hopefully as basis so that they don't get taxed on withdrawal) doesn't seem to gain you much.
Aug 29, 2015 at 21:30	answer	added	JTP - Apologise to Monica♦		timeline score: 4
Aug 29, 2015 at 20:19	history	asked	arcyqwerty	CC BY-SA 3.0