401(k) Rollover Question

If someone had $10k in a Roth 401(k), $10k in a traditional 401(k), and $10k in an after-tax 401(k) (which has $5k in contributions and $5k in earnings), how much money rolls over to a Roth IRA and how much rolls over to a traditional IRA?



Assuming that the person had separated from service, they would usually request a split direct rollover with 15k going to the Roth IRA and 15k to the TIRA. There would be no taxes due.

But if the person did not mind paying taxes on 15k, they could have the entire 30k rolled to the Roth IRA. Note that the Roth 401k balance can only be rolled to a Roth IRA, the other 20,000 can be rolled to either TIRA or Roth, but having the 5k of after tax contributions going to a TIRA should be avoided because it will create prorating on Form 8606 for life.

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