401(k) After-Tax Contributions

I have a client in his 60s that recently retired. His 401(k) with his former employer is broken down as follows:

  1. 95% pre-tax contributions and earnings on after-tax contributions
  2. 5% after-tax contributions

I know the after-tax contributions are eligible to be rolled directly into a Roth IRA. Is he able to rollover just the after-tax contributions and leave the pre-tax $ in his 401(k) or is a total rollover required (pre-tax $ rolling into his Traditional IRA and after-tax contributions rolling into his Roth IRA) and the 401(k) must be zeroed out?



Some plans may allow participants to roll out only the after tax sub account (contributions and earnings) and leave the pre tax account in place. Others require a total LSD. None will allow just the after tax contributions to be rolled out, except possibly any pre 1987 after tax contributions. Client should check with their plan administrator.

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