[Anonymous]

I was wondering if anyone here could answer this:

Short explanation is – I left my job of 4 years for a new job in a different state of which I participated in a Roth IRA plan with 100% employer match of the 5% I put in.

After leaving, I distributed the amount (knowing the consequences and it is the best given my situation – this is not the issue or question).

My question is: Apparantely there is a Roth and a nonroth portion of my distribution. Is anyone familiar with this? I received one check for less than 1/3 of the check amount that included a 1099-R that has the total distribution amount as fully taxable and federal income tax was withheld from the distribution. Is this from the employer portion of the contributions + any accrual?

I have not received a check for the other 2/3 portion and am hoping I didn’t mess up somewhere as expecting that part was the whole point of taking it out.

The financial companies offices are closed until monday and this has me on the edge of my seat this weekend!

My only self concluded explanation is i’ll receive 2 checks & 2 1099-R’s. One for the employer portion + accrual w/ tax withheld (The nonroth portion) and then another check + 1099-R for the amount I personally contributed to the Roth w/ $0 additional tax withheld (since I withheld that was withheld at contrib).

[Anonymous]

And just to answer my own question – I did some digging and it looks like I was right.

The match contribution per my last statement which was a little before distribution has the total employer match at the same amount as the 1099-R I recieved (with a difference of approx. $5 which is probably safe to assume additional earnings / change in investment value from stmt to distrib for employer match).

Case closed :). I'll confirm Monday in case anyone is interested.

[ScarletKnightCPA]

Looks like you already answered your own question but yes.

Company match is before tax traditional IRA like.

Also, I don't think you pay penalty on withdrawal of Principal from ROTH IRA (or roth 401K which it seems to be in your case). You already paid those taxes. You only receive penalty on the capital gains that your Roth earned.

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[Author]

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