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Subject:  Re: 401K to rollover IRA Date:  5/14/2013  3:19 PM
Author:  billjam Number:  72237 of 95777

I agree moving to an IRA could be a good idea.

If you have made after-tax contribtutions to the 401k, you should withdraw them (no tax impact) and invest them through a taxable account. The IRS formula for reclaiming after-tax contributions from an IRA is horrible. Basically, you can't get all of your money out unless you exhaust all the funds in the IRA. Of course, if you convert to a Roth IRA, you'll only pay tax on the tax deferred contributions and after the conversion my point is moot.
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