IRA
I’m working with a female age 62 who plans to retire in June. She has approximately $200,000 in a 401k plan of which $10,000 was contributed with after tax dollars. She would like to do the following: 1) Take out the $10,000 after tax contribution, 2) Take a taxable distribution of $15,000 and 3) Rollover the difference into an IRA.
Question: Is there any problem with this?
Permalink Submitted by Alan Spross on Wed, 2009-04-15 18:59
No. But to avoid confusion and potential errors with this combination, it would be simpler to order a direct rollover of the entire pre tax 190,000 and a distribution of the after tax amount. She can then take the extra $15,000 as a normal IRA distribution as she needs it.