CALPERS Supplimental Income to Roth?
my client was CA state employee and contributed to the CALPERS Supplimental Income Plan with after-tax $$…She is seperated from service in addition to being over age 60. It is clear from their website that the aft-tax money is hers and she can roll the earnings into an IRA.
Are the tax deferred earnings and the pre-tax contributions eligible to be converted to Roth?
Permalink Submitted by Alan Spross on Fri, 2010-02-12 21:45
If a distribution is eligible for rollover to a TIRA, then it is also eligible for a Roth conversion. If she wanted to convert the entire balance, only the pre tax amount of the conversion would be taxable, and she should be able to convert directly to a Roth IRA without rolling first to a TIRA.
Less clear and subject to debate is the ability to roll over the pre tax amount only to a TIRA and convert only the after tax money to a Roth tax free. The pro rate rules may eliminate that possiblity here, pending further IRS clarification on this issue.