When Is Roth 401K Taxed? 
There are two types of money in a Roth 401 -LRB- k -RRB- . The first is the money that you contribute . Since that was taxed before it was paid into the Roth 401 -LRB- k -RRB- it is returned without taxation . The other portion is the earnings or interest that the account accumulates . Once the Roth 401 -LRB- k -RRB- is more than five years old and you have reached fifty and a half years old , that pool of money is also distributed to you free of any income tax . 