Hey all,
Here's the situation:
56.5 YO, retiring next week.
62K in my 401K roth, which I've had less than 5 years.
Have another external roth that I've had for many years, but I don't think that matters.
Coronavirus relief bill allows for 100K withdrawal from 401K's without penalty.
Need cash for a vacation home.
Questions:
Should I be able to withdraw the full 401K Roth amount penalty and tax free for vacation home, or any other purpose?
In the week before retirement should I max out this roth for 2021 so it can (hopefully) grow until time to buy the house later this year? Have to act fast as I think I only have 1 1/2 paychecks left to work with.
As you can probably tell from my recent activity here, it's crunch time for me, hopefully I don't wear out my welcome
EDIT: On continued research it looks like the 100K withdrawal needs to be coronavirus related, so probably a no go. I guess I could claim I need a house in the mountains to escape the virus LOL.
Also, It also looks like any withdrawal from a Roth 401K (as opposed to traditional Roths) are pro-rated between original contributions and gains, with the gains being taxed and penalized since they wouldn't be qualified. I think the only option might be to roll over the full amount into an external Roth, at which point I think the original contributions could be pulled out without penalty or pro-ration.
Info source: https://www.fool.com/retirement/plans/roth-401k/withdrawal/
Here's the situation:
56.5 YO, retiring next week.
62K in my 401K roth, which I've had less than 5 years.
Have another external roth that I've had for many years, but I don't think that matters.
Coronavirus relief bill allows for 100K withdrawal from 401K's without penalty.
Need cash for a vacation home.
Questions:
Should I be able to withdraw the full 401K Roth amount penalty and tax free for vacation home, or any other purpose?
In the week before retirement should I max out this roth for 2021 so it can (hopefully) grow until time to buy the house later this year? Have to act fast as I think I only have 1 1/2 paychecks left to work with.
As you can probably tell from my recent activity here, it's crunch time for me, hopefully I don't wear out my welcome
EDIT: On continued research it looks like the 100K withdrawal needs to be coronavirus related, so probably a no go. I guess I could claim I need a house in the mountains to escape the virus LOL.
Also, It also looks like any withdrawal from a Roth 401K (as opposed to traditional Roths) are pro-rated between original contributions and gains, with the gains being taxed and penalized since they wouldn't be qualified. I think the only option might be to roll over the full amount into an external Roth, at which point I think the original contributions could be pulled out without penalty or pro-ration.
Info source: https://www.fool.com/retirement/plans/roth-401k/withdrawal/
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