The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  401k R/O or Trf: After-Tax Contributions Date:  4/28/2001  8:30 AM
Author:  abtinnyc Number:  50661 of 127753

I have an existing 401k with a prior employer. The plan allowed me to contribute amounts exceeding IRS limits for tax deductibility on an after-tax basis. If I want to transfer or rollover the balance in this 401k, how are the pre- and post-tax contributions treated? My understanding is that the pre-tax contributions together with all income earned on total contributions may be rolled over or transferred into my current employer's 401k or into a conduit IRA. However, with respect to the post-tax contributions, they may not be so transferred or rolled over. In this case, is it permissible to deposit them into a post-tax (i.e., non-deductible) IRA? (I assume that withholding is not an issue, as taxes have already been paid on such amounts.) If so, are there concerns I should be aware of in pursuing this matter?

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us