Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: saables Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122629  
Subject: Re: Are Employer contributions part of basis? Date: 3/20/2000 6:34 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Thank you, After sleeping on it and letting it percolate a bit, It makes better sense to me that since my 401(k) savings was "pre-tax", my "basis" would be zero. I need to pay tax on any amount I roll over. Thank you also for pointing out that as a conversion the "income" or roll-over amount has to be counted in the year it's rolled over. So it won't reduce my 1999 refund, but will impact my 2000 taxes instead.

What I guess I should do is open the account with a "contribution" prior to 4/17/00 to start the 5 year period from 1999 and not 2000. My understanding is that the 5 year period is satisfied for the entire account by the "earliest" money in the account. Is that right?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Kiddie Card Board
Should kids have their own credit card?
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.
Post of the Day:
Berkshire Hathaway

Taking Candy From Strangers
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 Glassdoor #1 Company to Work For 2015! 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.