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Personal Investments • Can Mega Backdoor Roth Contributions to Roth IRA Be Immediately Withdrawn Tax & Penalty-Free?

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If you contribute money directly to a Roth IRA, you can withdraw those contributions (not earnings, just contributions) tax and penalty-free at any time.

Is that also true of money you contribute to a Roth IRA via Mega Backdoor Roth (meaning money you contribute to a voluntary After-Tax Solo 401(k) account and then immediately transfer to a Roth IRA)?

For example, if I contributed $10,000 today to a Voluntary After-Tax account in a Solo 401(k) and then transferred it to a Roth IRA, could I immediately withdraw that $10,000 from the Roth IRA if necessary with no taxes or penalties exactly the same way I could if I had directly contributed it into the Roth IRA? Are there any other rules or considerations with that or is it as simple as that once it's in the Roth IRA I can withdraw it without tax or penalty at any time?

Statistics: Posted by GoldenBear17 — Mon Aug 05, 2024 5:30 am — Replies 0 — Views 3



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