Prorata rules for aftertax rollovers
If a client rolls over after tax contributions from a 401k plan into a Roth IRA via a 60 day rollover, will the rollover be subject to prorata rules if the client has another pretax IRA already in place????
If a client rolls over after tax contributions from a 401k plan into a Roth IRA via a 60 day rollover, will the rollover be subject to prorata rules if the client has another pretax IRA already in place????
Permalink Submitted by Joseph Arsenault on Wed, 2009-12-02 16:24
No
The aggregation rules do not apply to direct rollover conversions from an employer’s plan whether direct or indirect.
This of course is assuming you dont deposit the funds in a Traditioanl IRA first and you are under the MAGI income limitation of 100k for 2009.
-J