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Author: phooley Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: 401K Taxable Contributions Date: 1/2/2000 9:47 PM
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>> Now, when you eventually cash-out your old 401(k) assets, the entire
>> account balance minus the post-tax contributions is "rollable" into
>> a Rollover IRA or potentially a new 401(k) plan at a new employer. The
>> post-tax contributions themselves are not rollable and are returned to
>> you in cash as a non-taxable transaction.
>> TheBadger

> BADGER, does this mean that the interest earned on the post-tax
> contributions does not have to be distributed to me but rather
> it can be rolled over into the new tax defered accounted??


I can answer this one -- I did such a conversion just about a year ago.

I received a check representing all my post-tax contributions.

Another check went to the company where I opened my new IRA -- representing all my pre-tax contributions, matching contributions made by my company, all the accumulated earnings on those contributions and the accumulated earnings on my post-tax contributions.

So the answer to your question is "yes," except I wouldn't apply the word "interest" to the earnings. Those earnings essentially had to be included in the amount transferred into the IRA -- if not, I would have owed income tax and a 10% penalty. Guess you knew that...

Phooley
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