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Author: jtr56 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Need claification Date: 3/29/2002 11:23 AM
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Am I assuming that when doing a rollover from a company 401k to a self directed ira (I just retired)I might have to pay taxes on the increased value above my and my employer's contributions?
Now ya got me frightened !


No need to fear. You will receive a 1099R which will show the total amount "distributed". If there were after-tax contributions, you will receive a check for that amount. The remainder will be sent to your self-directed IRA. Since you've already paid tax on the after-tax money (if any), and the rest goes into the IRA, none of it will be taxable currently.

You put the total amount on the 1040 line for "total pensions and annuities", zero on the "taxable amount" line, and write "rollover" in the space between the lines (I think to the right of 15a and 16a -- don't have the form in front of me.

Cheers (and calm!)
jtr
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