Pre-1987 After Tax Contributions
The pre-1987 after tax contributions in an individual’s retirement plan (account made up of pre tax, post 1986 after tax, and pre-1987 after tax contributions) were deposited directly into the individual’s checking account when they started their pension after retiring. My understanding is they could deposit this into their Roth IRA as an indirect rollover. Is my logic sound?
Permalink Submitted by Alan - IRA critic on Mon, 2019-04-22 17:55
Yes, they could have done a 60 day rollover to their Roth IRA tax free, but it sounds like the 60 day period has expired? The individual should have done a split direct rollover per Notice 2014-54 with all after tax amounts going to their Roth IRA and pre tax to their TIRA.
Permalink Submitted by IRAQuestion5 on Tue, 2019-04-23 19:31
It is within the 60 day rollover window. Therefore the client will move the funds from their checking account to the Roth and tell the custodian it is a rollover.