Alan S. wrote:That doesn't sound right. The company PS contributions should not be lumped with your employee after tax contributions unless the plan does NOT maintain a separate sub account for the after tax contributions and their earnings. If the plan does maintain the separate sub account, you should be able to do a direct rollover of ONLY that sub account balance to your Roth IRA, with only the earnings on your after tax contributions taxable as part of that rollover. I think you need to clarify this difference with the plan. The goal is to get as much of the after tax balance into your Roth IRA without dragging along too much in taxable amounts from the earnings.
Sorry if I was not clear. My three choices for withdrawal are:
- Hardship Withdrawal
- After-Tax Withdrawal
- Regular Withdrawal
If I pick "Regular Withdrawal", it has an available balance equal to my DPS + my After-Tax contributions + After-Tax earnings. I would presume this would be pro-rata between those two.
If I pick "After-Tax Withdrawal", it has an available balance equal to my After-Tax contributions + After-Tax earnings.
I plan to do a "After-Tax Withdrawal" so I do not have to worry about any pro-rate nonsense. Once that is done though, I wonder about considering the "Regular Withdrawal". None of these funds then would be taxed already, so I'd have to pay nominal taxes on that. The question mainly is if that would be worthwhile. I already max out my 401k and Roth IRA annually, with the 401ks (old + current) being 65% of my portfolio and my Roth IRA being almost 20% of my portfolio. Based on your last sentence though, this sounds like it would NOT be a worthwhile move.