After Tax 401(k) Contributions / Distribution to Roth IRA
What are the rules for rolling out after-tax contributions to a Roth IRA? Is it under the same rules as a in-service distribution for those that are still under employment with the same company where those contributions were made? Thanks!
Permalink Submitted by Alan - IRA critic on Wed, 2020-07-15 02:23
Usually not. After tax 401k contributions are made to a separate sub account within the pre tax 401k account. These contributions are normally distributable along with their earnings anytime. A few plans however may have restricted such distributions. There may also not be choice whether to allow a distribution out to your Roth IRA or to do an IRR (in plan Roth rollover) to the designated Roth within the plan, but you usually will be able to move the after tax contributions while still employed to one of those Roth options.