Since an employee makes designated Roth contributions from after-tax income, can the employee make tax-free withdrawals from his or her designated Roth account at any time?
No, the same restrictions on withdrawals that apply to pre-tax elective contributions also apply to designated Roth contributions. If a plan permits distributions from 401(k) or 403(b) accounts because of hardship, an employee may choose to receive a hardship distribution from his or her designated Roth account. The hardship distribution will consist of a pro-rata share of earnings and basis and the earnings portion will be included in gross income unless the employee has had the designated Roth account for 5 years and is either disabled or over age 59 ½.
Related Questions
- Since an employee makes designated Roth contributions from after-tax income, can the employee make tax-free withdrawals from his or her designated Roth account at any time?
- Since I make designated Roth contributions from after-tax income, can I make tax-free withdrawals from my designated Roth account at any time?
- What is the amount in Box 5 , "employee contributions / Designated Roth contributions or insurance premiums" for?
