Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I believe his question was about the distinction between pretax, Roth and employer matching contributions - and the answer is not dependent on being vested. Most recordkeepers maintain all of the sources in one "account" for investment purposes (although some have started allowing you to invest Roth and pretax funds differently - but that is still a minority of recordkeepers). The recordkeeper knows how much was contributed to each source (Roth, pretax and match) and can, on the fly, calculate the proportion of the one "account" attributable to each. On distributions, the calculation is done, and various amounts (depending on the source) will be treated for tax purposes differently. The distribution will be broken down into appropriate sources so that you can roll over Roth money into a Roth IRA and the pretax (including the match) into a traditional IRA.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.