hello fellow B-heads.
I will try to make this simple
I rolled over a large sum from a Roth 401(k) to a Roth IRA in 2011. The Roth IRA had been open for over 5 years.
In order to purchase a home, I withdrew the entire account balance in 2012. Two parts of this should be tax and penalty free:
* $10,000 that is the lifetime allowance for first time home purchase
* contributions made into the original Roth IRA
I'm getting mixed information on the amount that was rolled over in 2011. Can someone help me to break down how to consider that portion ? I believe some of it should be counted just like a Roth IRA contribution, even though the contributions were made to a Roth 401k (and I've already payed taxes on them). I believe another portion of it is gains that should be taxed and penalized. Any help would be greatly appreciated. !!! Thanks !!