Can I Withdraw My Entire Roth 401k Contribution After 5 Years?

The article addresses a common question regarding the withdrawals of principal from 401(k) accounts after a set period. A Redditor seeks clarification on whether they can withdraw a total of $30,000 deposited over two years after five years have passed. Despite the belief that the five-year rule allows for full withdrawals, confusion arises about whether the rule applies individually to each deposited amount. The article emphasizes the need for clear understanding around withdrawal policies to navigate retirement accounts effectively, as external advice can often be misleading.

One common misconception with 401(k) withdrawals is the five-year rule, which is often confused with the withdrawal terms of a Roth IRA.

The confusion surrounding 401(k) withdrawals highlights the complexities of retirement accounts, particularly regarding penalties and the timing of contributions.

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