401k Rollover–Pretax, Aftertax, and Roth
If employee’s 401k holds pretax, aftertax, and Roth amounts, what is best way to distribute/rollover? Preference is to roll over taxable amounts to regular IRA, Roth amounts to Roth IRA, and distribute nontaxable amounts.
Permalink Submitted by Alan - IRA critic on Thu, 2013-12-26 21:47
That is doable. There will be a different 1099R for each of the 3 distributions since the Box 7 codes are different. While possible and beneficial, the methods for getting the after tax contributions in the pre tax account to a Roth IRA as well are more complex.