When Is Roth 401K Taxed?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are two types of money in a Roth 401(k). The first is the money that you contribute. Since that was taxed before it was paid into the Roth 401(k)it is returned without taxation. The other portion is the earnings or interest that the account accumulates. Once the Roth 401(k) is more than five years old and you have reached fifty and a half years old, that pool of money is also distributed to you free of any income tax.
    Answered on April 8, 2015
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    When is a Roth 401k taxed? Well, the money that is subject to tax in the case of a Roth is the money contributed to the account. You pay your taxes going in, to later receive those funds and their gains without paying additional taxes on those distributions. So tax first, no tax later.
    Answered on October 28, 2015
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