I have a Roth 401(k) and want to roll it over into my existing 15 year old Roth IRA while still employed. Vanguard is the fiduciary for both. Is any part of this rollover considered taxable?

I am under 59 1/2 but am not taking any funds out of the account until after 59 1/2 - just rolling over the account into the Roth IRA for more investment options.

  • After rolling it over to Roth IRA, you can take out up to the amount of your contributions at any time (doesn't have to be after you turn 59.5) without any tax or penalty.
    – user102008
    Jan 27 '20 at 18:54
  • Is it your current employer's Roth 401(k)?
    – RonJohn
    Jan 27 '20 at 19:11
  • Yes it is my current employer's 401(k).
    – John
    Jan 27 '20 at 19:15
  • 1
    Are you really allowed to roll money out of your current employer's 401(k)? I'm pretty certain you can't, although that "can't" might just be "very few plans allow it".
    – RonJohn
    Jan 27 '20 at 20:19
  • The question really is whether your 401(k) plan allows for in-service rollovers. Most plans don't, a few plans might after age 55, or after n years of service etc. Jan 27 '20 at 20:28

No tax.

See the IRS Rollover Chart. You are going from the Designated Roth Account row to the Roth IRA column. That rollover is allowed ("Yes") and there is no tax (no superscript 3 footnote for "Must include in income").

  • There is one caveat. The company match is pre-tax. So even if all the contributions from the employee are Roth, the total balance of the account will include pre-tax money. Jan 27 '20 at 19:07
  • 1
    @mhoran_psprep Good point. Although that would be a separate account, pre-tax 401(k), to be rolled over.
    – Craig W
    Jan 27 '20 at 19:09
  • There are actually three parts to the 401(k). Roth, pretax, and company match which is pretax as well. I will just rollover the Roth contributions, conversions, and gains.
    – John
    Jan 27 '20 at 19:16

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