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Financial Planning / Tax Strategies
|Subject: Re: income tax||Date: 5/5/2011 5:22 PM|
|Author: TMFPMarti||Number: 113355 of 124470|
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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