After Tax 401K
Just wanted to confirm the following regarding After Tax 401K contributions:
1- The withdrawals are subject to the 10% penalty if taken before age 59 1/2. (Are there any exceptions to waive the penalty?)
2- The withdrawals are taxed as ordinary income on the earning only if taken after reaching age 59 1/2.
3- It can be rolled over to Roth IRA in 2022. (If yes, what is the tax treatment of the earnings? Is the earning is taxed or not?)
Thanks
Permalink Submitted by Alan - IRA critic on Sat, 2022-06-25 20:57
Permalink Submitted by Ayman Ibrahim on Sun, 2022-06-26 14:21
Thanks Alon so much for your quick response.Just to confirm regarding number #3, the taxation for the rollover form after tax 401k to Roth IRA or Roth 401k is only on the earning amount. Correct?
Permalink Submitted by Alan - IRA critic on Sun, 2022-06-26 14:23
Yes, that is correct.