Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25265  
Subject: Re: After Tax Contribution? Date: 12/14/2001 2:56 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Bill. I presume you are over age 59-1/2 and therefore taking penalty free distributions.

When your 401K or IRA contains both before and aftertax contributions, a portion of every distribution is considered a refund of your aftertax contribution. Check the IRS Publication on IRAs for details. There is a worksheet for this in the instructions for form 1040 I believe.

So in this case $5520-4864.09 is the amount your 401K custodian calculated as the aftertax portion of your payment. The rest of it is a taxable distribution. I would think the ratio of 5520-4864.09 to $22K should be the same as the ratio of $5520 to the total value of your account on the date of distribution. If in doubt, ask your 401K custodian to provide details of the calculation.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.