Distribution Hierarchy for Designated Roth Withdraws?

Does anyone know, I know that there is not a distribution hierarchy for withdraws from Designated Roth 401(k) plans, unlike a Roth IRA (contributions, rollovers, than gains). But on a withdraw from a Designated Roth 401(k), if the Roth is made of $10,000 salary deferral, $10,000 gains and $10,000 IRR(Internal Roth Rollover), and a client does a distribution of $3,000, would the distribution source have to be $1,000 from the salary deferral, $1,000 from gains, and $1,000 from the IRR; even though the IRR has not satisfied the 5 year rule. Or could the distribution source be $1,500 from salary deferral and $1,500 from gain? 

On 1/27/2021 at 1:51 PM, JOH said:

Does anyone know, I know that there is not a distribution hierarchy for withdraws from Designated Roth 401(k) plans, unlike a Roth IRA (contributions, rollovers, than gains). But on a withdraw from a Designated Roth 401(k), if the Roth is made of $10,000 salary deferral, $10,000 gains and $10,000 IRR(Internal Roth Rollover), and a client does a distribution of $3,000, would the distribution source have to be $1,000 from the salary deferral, $1,000 from gains, and $1,000 from the IRR; even though the IRR has not satisfied the 5 year rule. Or could the distribution source be $1,500 from salary deferral and $1,500 from gain? 

JOH, I started a discussion of this a few years ago on this Forum. 

I don't think the IRS has a rule/established hierarchy, so it is up to the plan. Probably best practice is to say in plan document that it will be done according to a policy, and then have a written policy.

Thanks Luke for this information.