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Traditional IRA distributions are taxable and, unless you're 59 1/2 years old, subject to an extra 10 percent tax penalty. However, if you qualify as a first-time home buyer, you avoid the additional tax, but not regular income taxes, on your distribution. For example, assume you're not yet 59 1/2 years old, that you pay a 25 percent tax rate and that you take a $10,000 distribution for your first home.
Example: Your 401k distribution is 80% pre-tax and 20% after-tax. You tell the company to pay 80% to your traditional IRA and 20% to your Roth IRA. If these are treated as separate distributions, each one is split 80-20 between pre-tax and after-tax, so 80% of the amount transferred to the Roth would be taxable.