Roth 401(k) Non-Qualified Rollover

[Guest PensionPrincess]

A participant terminated employment, he is NOT yet age 59 1/2, and has NOT met the 5 year requirement on his Roth Contributions - he is going to have a Non-Qualified Roth distribution.

This participant would like to roll his Roth 401(k) to a Roth IRA.

1) Would his earnings still be taxed because it is a non-qualified distribution?

2) Is the plan be responsible for 20% mandatory withholding on those earnings?

Any guidance you can provide would be greatly appreciated!

[Guest Rajeev]

PensionPrincess,

For (1)... a Trustee to Trustee Rollover would be a qualified rollover... the 5 year wait period does not apply

For (2)... if done with (1), there should be no withholding.