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Re: Rollover of after-tax 401k with large gain

Default User BR wrote:... put it all in a traditional IRA, then roll the earnings back to the 401(k) and convert the basis.Brian

Why is it ok to separate the earnings from the basis when roll from a tIRA to a 401k but not from a 401k to a tIRA or a Roth?
Thank you.
by goGators
Wed Apr 10, 2013 5:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Rollover of after-tax 401k with large gain
Replies: 11
Views: 942

Re: Rollover of after-tax 401k with large gain

mrpotatoheadsays , thanks for the link. I think I begin to understand why it is preferred to keep pre-tax money in a 401K instead of a traditional IRA (TIRA) when converting my after-tax 401K to a Roth. It seems to me that the IRS treats 401Ks and IRAs as two (2) separated entities even though both...
by goGators
Sat Apr 06, 2013 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Rollover of after-tax 401k with large gain
Replies: 11
Views: 942

Re: Rollover of after-tax 401k with large gain

If I choose to go with the indirect method (another name for "Fairmark's strategy 3"?) and assume I have $12,000 total ( $10,000 basis + $2,000 earnings) in my after-tax account, are these following steps I need to execute: 1) Ask Fidelity for a distribution (NOT rollover) of my after-tax ...
by goGators
Sat Apr 06, 2013 6:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Rollover of after-tax 401k with large gain
Replies: 11
Views: 942

Re: Rollover of after-tax 401k with large gain

Thank you very much, Brian. I'll check with Fidelity to see if they could directly roll the earnings back. My goal is to empty out the after-tax account then make regular conversions of future after-tax contributions like many others on this board. Would this roll back strategy still give me a large...
by goGators
Fri Apr 05, 2013 5:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Rollover of after-tax 401k with large gain
Replies: 11
Views: 942

Rollover of after-tax 401k with large gain

Hi All, I have read many posts on this topic but could not find a clear answer to my situation. I hope you could help me. I would like to make an in-service direct rollover of my after-tax 401k which is managed by Fidelity. My after-tax account has significant amount of gain which will result in a l...
by goGators
Thu Apr 04, 2013 11:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rollover of after-tax 401k with large gain
Replies: 11
Views: 942

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