roth 401k

Can a taxpayer who contributed 24k to his Roth 401k last year, take the money out at any time
without taxes and penalties (just like one can do with a Roth IRA)?

The most limiting rules are probably going to be from the employer and/or 401(k) administrator, not related to Roth v Trad 401(k). I just looked into this recently and it looked like the ordering rules may be different, so withdrawals aren't first taken out of contributions, but are allocated based on overall percentages of the buckets.

very interesting...so if one gives 20k to a Roth 401k and there is no corporate match....and it's their first year...i guess they can tap into the 20k penalty and tax free (unless maybe there is some apperciation)

very interesting...so if one gives 20k to a Roth 401k and there is no corporate match....and it's their first year...i guess they can tap into the 20k penalty and tax free (unless maybe there is some apperciation)

From a federal tax perspective, my understanding is yes, as long as there are no earnings. But, I think the biggest hurdle is whether employers allow in service withdrawals, and under what conditions.

this is a solo 401k....then again, that may bring on other issues...in their 401k paperwork do they have to denote that they can take the money out while still working at the company..

What is the goal? Why contribute $24k to a Roth 401(k) just to pull it back out again? Just to get as much money into a Roth IRA as possible?

the client would feel more secure giving more $ if they knew it wasn't locked into the pension plan.....if they could withdraw the funds at a later date penalty and tax free, they'd feel more comfortable with the contributions.

If the plan allows it I would expect withdrawals to follow the normal qualified vs non-qualified rules.