Tax FAQ
 

I Have An Old Employer 401K Account That Is Made Up Of After-tax Contributions. What Are Tax Implications?

Question by mixp | Posted in United States

The account expression says these are "after tax contributions". This title is confusing since these were made pre-tax. I haven't worked for this patron for 15 years. I'm not sure if changes in the tax code is responsible for this. The name (after tax) seems to indicate that tax was already paid on these monies. Thats why I'm dazed. Any help/direction would be appreciated. I'd like to rollover into an existing rollover IRA with an several institution.

Answer: This is a retirement account with a point of departure, your after-tax contributions.

When you roll this into an IRA, do not combine it with your existing IRA. Roll it into a separate account. File Profile 8606 in the year of the rollover noting the basis of this IRA.

Then when you take distributions from this rollover IRA, it will be imaginable to figure how much is taxable and how much is not taxable.

Depending on how much of the account is after-tax,
 
 

I Want To Convert IRA's Set Up With After Tax Contributions To A Roth IRA In 2010. Are There Tax Implications?

Question by Richard | Posted in United States

I have several IRA's that are all funded with after tax contributions and have not been deducted from any tax resurfacing. Can I convert then in 2010 to a Roth without any penalty or tax payments?

Answer: I assume trust to they will not charge any tax to you. Any 401k's however will. Call you investment agency whom you are opening this account with. They will give you a definite fill

Roth IRAs are definitely the best in my opinion. ESPECIALLY if you earn more funds in the future and boost yourself into a higher tax bracket, since you already paid taxes on it previously.

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I'm 22 And Will Start To Contribute To A 401k At Work. Would Before-tax Or After-tax Contributions Be Good?

Question by Chris B | Posted in United States


Answer: i entertain the idea before tax contribution its less money you will be taxed on every week

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I Will Be Moving Two 401K's Into An IRA. How Do I Handle The After Tax Contributions In Both Of Them? Thanks

Question by Sparky | Posted in Personal Finance

Also, can I move a 403B into the same IRA? Thanks again..

Answer: You can rolling over a 401k and a 403b into a conventional IRA. There are no tax consequences. In all three cases, the contributions are in before-tax dollars, and both the savings and the interest are tax deferred.
If you are viewpoint about changing from a 401k to a Roth IRA, think twice before you do it. You would have to pay taxes, at your current merit, on everything you move from the 401k to a Roth IRA. If you are still working, it might be better to start a Roth IRA with new net

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What Are The Tax Implications Of Rolling 401K After-tax Contributions To A Roth Ira?

Question by Melinda Mccullough | Posted in United States


 

Rolling over “after-tax” 401K contributions to IRA?

by Editor

If you croissant into a Uniform IRA, this could beat it into an Accounting nightmare, influence tax together, as the new trustee may not take into account how much of your rollover is pre-tax and how much was after-tax contributions. If you vanish into a Roth IRA, all of the pre-tax contributions become immediately taxable, which is not a commodities affair at this originate of the misrepresent. If you are blithesome with the investment range that currently exists in the account, you shouldn’t have to enshroud a arrive the on Easy Street at all. You might also contemplate on contacting the administrator of your 401(k) layout, as they might be masterly to metamorphose you to an IRA without all of the headaches that I mentioned. This depends on your entourage’s scheme details, but you do have choices. Precisely be tried you are relaxing with the investment choices offered. When you annuitize (should you pick out to do so), it can be easier or harder, depending on how your trustee handles the reporting....

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