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Author: jamesjc9 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121110  
Subject: income tax Date: 5/4/2011 1:27 PM
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I had an after-tax funded 401k with nmy employer. This was prior to the Roth IRA opportunity. I rolled it into an IRA and then into a Roth IRA. Do I have any tax liability for it since it was funded with after-tax funds originally.
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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113352 of 121110
Subject: Re: income tax Date: 5/4/2011 2:25 PM
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I think that any growth of the account over what you contributed would be subject to income tax.

Bob

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113354 of 121110
Subject: Re: income tax Date: 5/4/2011 5:39 PM
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I had an after-tax funded 401k with nmy employer. This was prior to the Roth IRA opportunity. I rolled it into an IRA and then into a Roth IRA. Do I have any tax liability for it since it was funded with after-tax funds originally.

When you rolled over the 401K to an a traditional IRA, the after-tax contributions are reported on form 8606 and is your cost basis for the conversion.

It isn't clear if this was all done in one tax year.

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113355 of 121110
Subject: Re: income tax Date: 5/5/2011 5:22 PM
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I had an after-tax funded 401k with nmy employer. This was prior to the Roth IRA opportunity. I rolled it into an IRA and then into a Roth IRA. Do I have any tax liability for it since it was funded with after-tax funds originally.

Not enough info to tell.

The rollover from 401(k) to traditional IRA creates a "basis" in the traditional IRA, which you establish in Part I of Form 8606 for the year of the rollover. The taxable part of the conversion is figured the same as any other conversion involving after-tax basis, also calculated in Part I of Form 8606.

Phil
Rule Your Retirement Home Fool

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