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Mawhinny asks:

<<My 401K account includes "after tax dollars". It is my understanding that if I move my 401K to an IRA account, the "after tax dollars" become taxable and cannot be moved into the IRA. I would need to include the "after tax dollars" in my income for the year in which I take it. Is this true? >>

Your understanding is incorrect. When you transfer your 401k money to an IRA, the after-tax contributions will come to you in a separate check. They cannot be put in the IRA, but they have already been taxed once, so they will not be taxed again. You do not have to report the after-tax contributions as income, you will not be taxed, and you may do with it as you please.

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