The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: 401K to rollover IRA||Date: 5/14/2013 4:45 PM|
|Author: gdett2||Number: 72239 of 77570|
If you have made after-tax contribtutions to the 401k, you should withdraw them (no tax impact) and invest them through a taxable account
This is not a cut and dried fact. Look through this article from July 2012:
Since the funds are considered as part of the 401k(they really are), you can't just take them out and put them in a taxable account.
Maybe Phil will weigh in an this one.
Whatever the OP does, he/she should discuss this fully with the plan holders on both sides of the rollover to make sure what is done is all above board. Running afoul of the IRS, even for a small amount, can become a huge issue in the future.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|