Roth rollover of after tax amounts in QRP
Can traditional (pre-Roth) after tax contributions in a qualified plan be directly rolled into a Roth IRA?
Can traditional (pre-Roth) after tax contributions in a qualified plan be directly rolled into a Roth IRA?
Permalink Submitted by Alan Spross on Mon, 2010-05-24 21:16
Yes, but not isolated from your pre tax balance in the plan. An exception applies to pre 1987 after tax contributions that are tracked separately by your plan.
For example, assuming NO pre 1987 after tax contributions, if your QRP holds 100,000, of which 12,000 is after tax contributions, a direct conversion to a Roth IRA of any amount would be 12% tax free or 88% taxable.