A 401(k) plan permits designated Roth contributions. If a participant terminates employment and takes his/her entire account balance and then is rehired, does the 5-year Roth period start over?

Same plan? Same Participant? Then no, as far as I can tell, the 5-year Roth clock does not start over.

Another question about the five year rule for Roth 401k.
Is this how it works?
If a participant opens and contributes to the Roth 401k at 56 years old, tax free withdrawals are not permitted until 61 years old? Do I have this right?
Thanks a little slow this morning.

Yes, in this case would be age 61.

Both (1) and (2) must be met:

(1) Five-year taxable period must have ended
(2) A qualifying event must have occurred (death, disability, reached age 59.5).

The five year clock begins with the January 1 of the first calendar year that a Roth contribution is made.

If the first contribution goes in October 1, 2006 when the participant had his 56th birthday, then:

2006 = year 1 (age 56)
2007 = year 2 (age 57)
2008 = year 3 (age 58)
2009 = year 4 (age 59)
2010 = year 5 (age 60)

Any withdrawal before 12/31/2010 would be too early. The five-year clock ends 12/31/2010.

A withdrawal on January 1, 2011 has met the five year rule (even though that is technically only 4.25 years after the first contribution was made).

J4FKBC,
Thank you once again for the info and the example. Much appreciated.