goGators wrote:1) Do I own any tax if the rollover executed as described above? This is for after-tax portion only. The pre-tax 401K still remains in my employer's plan.
2) What is the IRS view on such transactions?
goGators wrote:One more question for all:
Alan S. wrote "....report the basis and then roll the pre tax TIRA balance back into the plan...". How do I report the basis?
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
goGators wrote: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?
Tax treatment of a rollover from a traditional IRA to an eligible retirement plan other than an IRA. Ordinarily, when you have basis in your IRAs, any distribution is considered to include both nontaxable and taxable amounts. Without a special rule, the nontaxable portion of such a distribution could not be rolled over. However, a special rule treats a distribution you roll over into an eligible retirement plan as including only otherwise taxable amounts if the amount you either leave in your IRAs or do not roll over is at least equal to your basis. The effect of this special rule is to make the amount in your traditional IRAs that you can roll over to an eligible retirement plan as large as possible.
Users browsing this forum: Majestic-12 [Bot], Yahoo [Bot] and 54 guests