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Hi All. Here is my situation: I have a ~$9,000 balance in my Roth 401(k), with a vested balance of approximately $4,500 (employer match has not yet vested). I am leaving my job that I have been at for 2 years and I am 23 years old. For argument's sake, let's say I contributed $4,000 from my paycheck and the remaining $500 of the vested balance were capital gains. Because it is a Roth 401(k), the ~$4,000 or so I have contributed has been after-tax money. I have the option to withdrawal, rollover to new employer, or just keep it. In my current life situation, my preference is to withdrawal and finish paying off some student loans and get out of my parent's house and forgo the "financially correct" move and allow the $4,500 to grow tax-free into retirement and withdraw that tax-free. However, what is the tax penalty for doing this? I am comfortable paying the following penalty: 10% on $4,500 withdrawal 30% (or whatever my income tax rate is) on the $500 capital gains. So altogether, I would net about $4,000. However, will this $4,500 also be counted as income at the end of the year? Then I will be double-taxed and will only net about $2,800. That wouldn't make sense to me because I have already paid income taxes on that money once when I was paid. Could someone clear this up for me please? I am reading conflicting things on the internet. Let me know if any further information is needed and I really appreciate your help! This board is a wealth of knowledge.