Qualified Plan Rollover Question
I have a qualified plan thru a union with about $2MM. The company that the funds are with are telling me that i have $1.6MM pretax money and $400k post tax. Of the $400k post tax- $300k is earnings on the post tax and $100k is my own contributions. My goal is rollover the $1.6MM and the $300k into a Traditional IRA rollover and then roll the $100k into a Roth. In the end i would assume this is all not taxable. Do i have this right? Thanks very much in advance. Dont want to get this wrong.
Permalink Submitted by Alan - IRA critic on Thu, 2024-06-27 19:59
Yes, you are correct that Notice 2014-54 allows exactly that. You should request in a single request to have two direct rollovers with the pre tax amount (1,900,000) going to your TIRA and the 100,000 to your Roth IRA.
Every so often there is a plan that can only do one direct rollover. If you run into that, request the direct rollover of the pre tax amount to your TIRA, and request a distribution to you of the 100,000. You then complete a 60 day rollover of the 100,000 to your Roth IRA. No tax will be due.