francolepza
New member
I recently quit my job where I had 401(k). Had the job for close to 10 years. Most of my contributions were Roth, and in the last few years as my income increased, I changed contributions to Traditional. I'm in my early 40s.
When I look at website for the account, it says that out of the total balance of the account, my Net Roth Contributions were (for example) $100,000, and that "First year of withdrawal without penalty" is 2019.
My plan has been to roll this 401(k) into existing IRAs. I have both an existing Roth IRA and Traditional IRA. From what I understand, the Roth allocations in the 401(k) will roll into my existing Roth IRA, and my the non-Roth allocations in the 401(k) will roll into my existing Traditional IRA.
What I'm wondering is: if I roll this 401(k) into my existing IRAs, do I lose the ability to withdrawal that $100,000, at some point in the future penalty-free? I don't intend to withdrawal anything, and have emergency savings, but I'm strategizing how to handle a situation where I run out of emergency savings—whether I'll be able to tap these 401(k) Roth Contributions for penalty-free withdrawal as an emergency fund backup if the 401(k) has been rolled-over.
And if I don't lose the ability to withdrawal this $100,000 penalty-free after it's been rolled into my Roth IRA, how can I keep track of this $100,000 number? In other words, at any given point in time (12 months from now or five years from now), how can either I or my CPA know what the amount is that I'm eligible for to withdrawal from the Roth IRA penalty-free? Will my IRA brokerage provide that information, or does my CPA somehow have to go back and reverse engineer the number by looking at all my yearly W-2s from this job?
When I look at website for the account, it says that out of the total balance of the account, my Net Roth Contributions were (for example) $100,000, and that "First year of withdrawal without penalty" is 2019.
My plan has been to roll this 401(k) into existing IRAs. I have both an existing Roth IRA and Traditional IRA. From what I understand, the Roth allocations in the 401(k) will roll into my existing Roth IRA, and my the non-Roth allocations in the 401(k) will roll into my existing Traditional IRA.
What I'm wondering is: if I roll this 401(k) into my existing IRAs, do I lose the ability to withdrawal that $100,000, at some point in the future penalty-free? I don't intend to withdrawal anything, and have emergency savings, but I'm strategizing how to handle a situation where I run out of emergency savings—whether I'll be able to tap these 401(k) Roth Contributions for penalty-free withdrawal as an emergency fund backup if the 401(k) has been rolled-over.
And if I don't lose the ability to withdrawal this $100,000 penalty-free after it's been rolled into my Roth IRA, how can I keep track of this $100,000 number? In other words, at any given point in time (12 months from now or five years from now), how can either I or my CPA know what the amount is that I'm eligible for to withdrawal from the Roth IRA penalty-free? Will my IRA brokerage provide that information, or does my CPA somehow have to go back and reverse engineer the number by looking at all my yearly W-2s from this job?