401k Rollover – After-Tax
I have an old employer 401k with pre-tax and after-tax money in it that I am in the process of rolling over. The plan admin said I can only have 1 check made as a direct rollover, so I had the pre-tax money sent directly to an IRA Rollover. The after-tax money is made payable to me. Can I move the after-tax money into a Roth IRA once I receive it under the 60 day rule?
Thanks!
Permalink Submitted by Alan - IRA critic on Tue, 2018-05-08 16:06
Yes, you can do a 60 day rollover to the Roth IRA. You will get a separate 1099R for each distribution from the 401k since they will be coded differently. The after tax check distribution 1099R should obviously not have any amount in Box 2a. Since the Roth rollover contribution will be non taxable, it can be distributed from the Roth IRA without any penalty and therefore does not have to be held 5 years like a taxable conversion.
Permalink Submitted by HFA123 on Tue, 2018-05-08 16:57
Thank you!