Rollover of after-tax contributions to ROTH ira
I have a client who just retired from the Red Cross. She has a $162,000 retirement account of which 45,000 is after-tax contributions. Question I have is can she roll the $45,000 into a ROTH IRA? Have looked in IRS pubs for answer but cannot get a direct answer.
John Lister
Permalink Submitted by Alan - IRA critic on Mon, 2014-08-11 22:42
Yes, there are various ways to isolate the basis to a Roth IRA, some safer than others. The IRS has left conflicting guidance on this, but never followed through. Enter “isolation of basis” in the search box above and you will get several pages of discussions.