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Financial Planning / Tax Strategies


Subject:  Re: income tax Date:  5/5/2011  5:22 PM
Author:  TMFPMarti Number:  113355 of 127613

I had an after-tax funded 401k with nmy employer. This was prior to the Roth IRA opportunity. I rolled it into an IRA and then into a Roth IRA. Do I have any tax liability for it since it was funded with after-tax funds originally.

Not enough info to tell.

The rollover from 401(k) to traditional IRA creates a "basis" in the traditional IRA, which you establish in Part I of Form 8606 for the year of the rollover. The taxable part of the conversion is figured the same as any other conversion involving after-tax basis, also calculated in Part I of Form 8606.

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