Determination of the taxable portion of a 401K rolled over to an IRA
Posted 01 February 2005 - 09:26 PM
Husband retired and rolled his 401K to an IRA. The IRA contains around $450K. Now husband is getting divorced and is transferring half of money to wife as part of settlement. Wife needs to know what portion of the transferred IRA is taxable since the original 401K had a non-taxable and taxable portion. Husband is 68 and wife is 63. Husband says he does not have records of the 401K distribution/rollover.
How does one determine the taxable portion of a 401K rolled over to an IRA?
Posted 01 February 2005 - 10:28 PM
Posted 02 February 2005 - 08:20 AM
Posted 02 February 2005 - 11:24 AM
Then look at the account balance (if available) before the rollover.
If the IRA trustee did not take the after-tax money, then the rolled amount is all taxable.
If the IRA trustee did take the entire balance, then you only have recourse to the recordkeeper of the original account.
Edited by SoCalActuary, 02 February 2005 - 11:24 AM.
Posted 02 February 2005 - 12:33 PM
Posted 02 February 2005 - 01:13 PM
It appears that the 6% that you refer to are salary deferral amounts under a
Would the taxable portion still be 100% if the company contributed 3% and the Husband 6%?
401(k) provision. These were contributed pre-tax, so they would be taxable when withdrawn.
It also appears that the 3% that you refer to is an employer matching contributions. These amounts were not taxable to the participant when contributed, so they would be taxable when withdrawn.