Sign up, and you can customize which countdowns you see. Sign up
Dec 27, 2024
9:35:39am
zuko All-American
When I take distributions from a 401(k) account that has a mix of Roth and
traditional contributions, how do the taxes work?

Example:
Gary contributed a total of $50k 401(k) account. All of it was Roth contributions.
Gary's employer matched all of the $50k, but the match counts as traditional contributions.

Gary's 401(k) has grown in value to $300k. Is exactly half of this amount considered to be Roth and half traditional? If Gary wants to take $80k in distributions this year, can he take $50k in Roth distributions and $30k in traditional distributions (and since he's married filing jointly, that will be exactly equal to the standard deduction, so he won't owe any income taxes)?
zuko
Previous username
ThetaSigma
Bio page
zuko
Joined
Aug 4, 2015
Last login
Dec 28, 2024
Total posts
3,400 (14 FO)