Pre and After Tax 403(b) monies
I have a client with 1,200,000 in a 403b. 200,000 is after tax. I understand distributions to the client would be on a prorata basis. But, Can we rollover the pre tax to a Traditional IRA and the After tax to a Roth IRA?
Thanks,
John
Permalink Submitted by Alan - IRA critic on Tue, 2017-04-18 14:51
Yes, a split rollover per Notice 2014-54 is offered by almost all plans. If this particular plan will not execute that, then client should be able to request a direct rollover of the pre tax amount to a TIRA and have the after tax amount distributed directly to client, who can then do a 60 day rollover to his Roth IRA.