Roth Conversion – using after tax contributions
We have a clinet who has a GE S&S Thrift Savings PLan that allows after tax contirbutions. The plan also allows you to remove the after tax contributions seperate from the pre-tax contributions.
Could we roll these after tax contributions directly to a Roth, Tax Free?
Our thoughts is that so long as the plan allows you to segregate the pre and post tax contributions(they could request a check for the after tax contributions), then it should not be an issue.
Any feedback is encouraged, hopefully someone has done this before.
Permalink Submitted by Alan Spross on Mon, 2009-11-16 21:51
As long as the 1099R issued by the plan shows no pre amounts distributed, the tax free Roth conversion is possible. MAGI income limits still apply to the end of 2009.