Can I roll over a Roth 401k to a Roth IRA and then withdraw penalty free?

I have an after-tax 401(k) with a former employer and an existing Roth IRA. I'd like to rollover the 401(k). Can I then withdraw that money penalty free, like a contribution, since it is also after tax?

401(k), IRAs, Taxes
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November 2017
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Yes, once you have rolled over your Roth 401(k) directly to your Roth IRA, the qualification for penalty free distributions is 59.5 years of age and held the Roth IRA for five years.

You also will eliminate your Required Minimum Distributions (RMDs). Roth IRAs do not have RMDs. Whereas Roth 401(k)s have RMDs once you have stopped working and are 70.5 years of age. Also with traditional IRAs, once again when you turn 70.5 years of age the government wants your tax dollars so badly that they require you to take these funds out of your traditional IRA every year. If you forget or choose not to take these funds out of your traditional IRA, the IRS will impose a 50% penalty.

Also when withdrawing funds from your traditional IRA, the income counts as provisional income, whereas when withdrawing funds from your Roth IRA, the distributions have no Social Security tax. Roth IRA distributions do not count against income thresholds that may cause Social Security benefits to be taxed.

And your heirs will receive your Roth funds tax-free.

Read more: Income Taxes and Your Retirement Accounts | Investopedia

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