Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Thanks for your clarification. I have another question. After-tax money can be broken down into what portion is contributions and what is earnings. I read where the contribution amount cannot be transferred from a 401k plan to an IRA account. What happens to the earnings portion?
Print the post  


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.
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.