Rollover from 401k(including after-tax contributions) to IRA/ Roth IRA

Submitted by Michael Hirsh on Tue, 2014-01-14 19:58

Taxpayer has 401Kk plan with pretax and after tax contributions and accumulated earnings.
(no Designated Roth Accounts).

Question – Can he direct pretax contributions and earnings(on both pre and aftertax contributions)to a IRA account and direct/divert only the after tax contributions to a Roth IRA, therefore having no taxable income to report ?

Is there guideance you can provide regardless of the answer ?

Thanks



Submitted by Alan - IRA critic on Tue, 2014-01-14 22:06

Yes, there are ways to do that but some of them are more risky than others. Do a search under “isolation of basis” and you should find several discussions on this.



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