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.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra