How gain on postt tax contribution is calculated?
Hello,
We have a client that will be doing a rollover contribution of their assets in their 401(k) to their IRA . Part of the contribution is post tax. How does the gain on the post tax is calculated once asset is rolled over to the new IRA? Help?
Permalink Submitted by Alan Spross on Wed, 2010-02-17 22:16
The gain is treated as pre tax. If the actual amount of after tax contributions is significant, it might be best to wait until the IRS determines if there is a way to separate the post tax amount out for a Roth conversion, while avoiding the pro rate rules.