When rolling over a Roth 401(k) to a Roth IRA, does one have to pay any tax as a result of the transfer? For example, are the earnings resulting from the Roth 401(k) investments taxed when transferred to the Roth IRA?

(I am aware that one may have to pay a fee from the 401(k) investment company: Is an account transfer fee paid for transferring a Roth 401(k) to a Roth IRA tax-deductible?)


No, Roth accounts are from already taxed money, and changing the provider has no effect.

The only tax you pay for Roth money is on the gains you made and only if you take it out before you are 59.5 and before the account is 5 years old.

And in case you are worried about the five year minimum account age, the oldest account you had counts. So moving the account to a different provider does not reset the clock, even if you close the other older one.

Nate that there should be no fee typically at the target, as the new provider is more than eager to get your money. They would kiss your feet if they could.
The old one may charge a 'closing' fee, which is basically a 'what? you are going away from us? we hate you' fee.

  • As such, the new provider may be willing to cover the cost of an old provider's closing fee. You can ask.
    – user117529
    Nov 9 '17 at 7:04
  • 2
    DeMorgan's nitpicks: Roth IRA earnings distribution is tax-free (qualified) if you are at least 59.5 (or dead, disabled, or 'first-time' homebuyer) AND it's at least 5 years since the beginning of the year you first contributed, transferred or converted to any Roth IRA -- but not the 401k which is not just a different provider but a different law. The converse is that it is taxable if you are less than 59.5 (and no exception applies) OR it's less than 5 years since year of first deposit. Nov 9 '17 at 12:48

No, I did it from my last job Roth to Roth and did not pay any additional taxes due to that.

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