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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: IRA Basis Date: 1/19/2004 11:21 PM
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As suggested in the other replies, if you never made any after-tax contributions to your 401k, your basis in the rollover IRA will be zero. If you did make after-tax contributions to the 401k (whether you could even do this would depend on your company's specific plan), it used to be simple because when the rollover was made the company would send you a check for the after-tax contributions. They were not allowed to roll them to the new IRA. You had already paid tax on them so you could just invest the funds in a taxable account. I believe the law may have been changed, however, to permit even after-tax contributions to be rolled over. If you aren't sure whether you had after-tax contributions, check the documents you received from you employer.

BTW, I don't think IRS will mind if you just put down zero basis even though you made after-tax contributions. That just means they get to tax the money twice.
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