When It’s Time to Tap a Roth 401(k)

Want to declare your Roth money’s independence from Uncle Sam? Get up to speed on the rules for tapping a Roth 401(k) tax-free.

Smooth rocks with the words retire, 401K, IRA, roth and save on them arranged in a zen-like way.
(Image credit: AndrewWilliam)

The Roth 401(k) is a powerful savings vehicle that can deliver a tax-free pot of money in retirement. Such a stash gives you some future control over your tax bill, says Chris Chaney, vice president at Fort Pitt Capital Group, in Pittsburgh. You can tap it for, say, a new roof or moving expenses, without upping your taxable income. But there are hurdles to overcome to keep Uncle Sam away from your Roth 401(k) money.

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Rachel L. Sheedy
Editor, Kiplinger's Retirement Report