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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81641  
Subject: Re: A quick question..... Date: 2/21/2000 3:37 PM
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{{The advantages of the after tax version is that one can still receive a corporate matching contribution (where it's offered) and it is far easier to make withdrawals, because they're not subject to the penalties associated with pre-tax plans. Corporations, again, usually restrict the number of times you can withdraw, but that's just to keep people from treating it as they might a bank savings account. And, obviously, you've already paid the taxes on the contributed amount, so owe taxes only on any increase in value that might have been received........}}

Hmmm. I have an IRA with Westinghouse which has both pre- and after-tax contributions. I would like to roll it over to a self directed IRA, but I have been told by two people now that a) the after-tax monies cannot be put back into an IRA, and b) I will owe taxes on the appreciated amount (as you say) but I will also be penalized for a "premature withdrawal", since the money can't be IRA'd. (The IRA is about 4/5 pre- and about 1/5 after-tax, by percentage.)

Any comments about this? I feel like the money is "trapped" for another decade unless I want to pay the taxes (that part is OK with me) AND the penalties (which is not OK IMO.)

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