Roth Distribution - Pro-Rata or Basis First

[Vlad401k]

I have a quick question about the Roth Distributions... Let's say a participant takes a partial distribution, does basis leave first or is the distribution taken pro-rata from basis and gains? It's my understanding that the treatment is different depending on if it's a 401k account or an IRA account:

1) For 401k distributions, the distribution of Roth source is considered to be taken pro-rata from the basis and earnings.

2) For a Roth IRA, the basis is considered to be taken first until all of the basis is taken out. Once all of the basis leaves the account, the earnings will have to be pulled.

Is my line of thinking correct?

[ETA Consulting LLC]

Yes.

Good Luck!