Rolling a **Roth 401(k)** into a **Roth IRA** is usually tax-free — but your after-tax **basis** and the **5-year clock** decide how much of the money you can actually touch. This calculator separates basis from earnings so you can see exactly what is taxable, what is penalty-free, and when.
| Feature | Roth 401(k) | Roth IRA (after rollover) |
|---|---|---|
| Required minimum distributions | Yes — starting at age 73 | None for the owner |
| Investment menu | Limit to plan's ~20–30 funds | Any security in the market |
| Loans allowed | Yes, up to 50% / $50,000 | No loans permitted |
| 2026 contribution limit | $24,500 (+$8,000 catch-up 50+) | $7,500 (+$1,100 catch-up 50+) |
| 5-year clock for earnings | Plan-specific, starts at first Roth deferral | Restarts at the first Roth IRA |
| Withdrawal of contributions | Prorated, not basis-first | Basis-first, always tax-free |
| Creditor protection | ERISA — unlimited in bankruptcy | State law, often $1M+ — varies |
| Backdoor contributions | Not possible | Enabled by the rollover |
The single biggest reason to roll a Roth 401(k) into a Roth IRA is RMD elimination. Roth 401(k)s force distributions at age 73 just like traditional 401(k)s; a Roth IRA owned by the original account holder never does. Over a 25-year retirement that difference compounds into a materially larger tax-free balance.
The single biggest reason not to roll is that the Roth IRA 5-year clock restarts. If you plan to withdraw earnings before five years have passed since your first Roth IRA contribution, you would trade RMD relief for an early-distribution trap.
There are two separate clocks and they are frequently confused. The Roth 401(k) 5-taxable-year period starts with your first designated Roth deferral into the plan. The Roth IRA 5-year period starts with your first contribution or conversion to any Roth IRA. When you roll over, the plan clock does not carry across for the earnings-built-in rule — so a rollover in a year when your Roth IRA is brand new means a five-year wait before earnings come out penalty-free.
This calculator is for anyone leaving a job, retiring, or simply consolidating accounts who holds a designated Roth account inside a 401(k), 403(b) or governmental 457(b). Three groups benefit most:
Roth 401(k)s impose RMDs at 73. A Roth IRA does not. Rolling before the RMD year preserves the compounding that RMDs would force out.
An old plan's fund menu is usually inferior to a brokerage IRA, and small balances under $7,000 can be force-cashed out by the plan if you do not act.
Emptying a plan into a Roth IRA simplifies pro-rata tracking and enables clean annual backdoor contributions.
A Roth IRA inherited by a spouse can be treated as their own; a Roth 401(k) generally forces a 10-year payout for non-spouse heirs.
| Item | 2026 Amount | Why it matters here |
|---|---|---|
| 401(k) elective deferral limit | $24,500 | Caps new designated Roth contributions |
| 401(k) catch-up, age 50+ | $8,000 | Raises the Roth basis you can build |
| Super catch-up, ages 60–63 | $11,250 | New tier under SECURE 2.0 |
| Roth IRA contribution limit | $7,500 | Caps post-rollover contributions |
| Roth IRA catch-up, age 50+ | $1,100 | Indexed for the first time in 2026 |
| RMD age | 73 | Roth 401(k) only — Roth IRA exempt |
| Indirect rollover window | 60 days | Miss it and the whole amount is taxable |
| Mandatory withholding, indirect | 20% | Applies to the gross distribution |
Generally no. Because both sides are after-tax Roth money, a direct trustee-to-trustee transfer of a designated Roth account to a Roth IRA is a non-taxable event. The calculator still shows an earnings figure because earnings are tracked separately and must satisfy the five-year rule before they can be withdrawn penalty-free.
For the earnings portion, yes. The Roth IRA's five-taxable-year period begins with your first contribution or conversion to any Roth IRA. A long-held Roth 401(k) clock does not transfer. If you already have an older Roth IRA, that existing clock governs and you may be past five years already.
No. A Roth-to-Roth direct rollover has nothing taxable to withhold. If you instead take a check, the plan must withhold 20% of the gross amount, and you must replace that withheld portion from outside funds within 60 days or it becomes a taxable distribution plus a 10% penalty if you are under 59½.
You can, but you should not. Moving Roth money into a traditional IRA converts a tax-free bucket into a tax-deferred one, and every later distribution is taxed as ordinary income. Always route designated Roth dollars to a Roth IRA.
An outstanding 401(k) loan cannot be rolled over. If you leave the employer with a loan balance, the plan will offset it and treat the unpaid amount as a distribution — taxable if it came from pre-tax money, and reported on Form 1099-R in the year of the offset.
Yes, and it gets easier. Rolling the Roth 401(k) into a Roth IRA does not create pre-tax IRA money, so it does not trigger pro-rata taxation. Only traditional IRA balances count against the backdoor strategy, so consolidating Roth money has no downside there.
⚠️ Important Note: A Roth 401(k) to Roth IRA rollover requires a direct trustee-to-trustee transfer. Do not accept a check payable to you unless you can redeposit the full gross amount, including the mandatory 20% withheld, within 60 days. This tool provides estimates for planning only — confirm the treatment of your designated Roth basis with your plan administrator or a tax professional before moving money.