I have a portion of my 401k plan with my current employer in an after tax account, more than $4K. From the plan there are a few limited distributions options that I have however there appears to be no distribution restrictions on my After Tax contributions to this 401k plan except that I will owe taxes on any earnings on those after tax contributions if I take a distribution.

Can I remove the entire balance, pay taxes on the earnings and place them into a Roth in less than 60 days and not have to pay penalities on the earnings? Is there a limit to the amount that I can convert ($2K/yr)? If there is a limit can I take out the same amount and put it in a Roth for my wife, up to the limit, or can I only use those funds for my Roth, if at all?

If I had let's say $10K balance in my after tax 401K account($6K original/$4K earnings), can I take a distribution for the entire amount pay taxes on the $4K invest the balance in a Roth in less than 60 days an keep the $6k out with no penalties?

The after tax money can never be rolled into an IRA. So even if you can take the distribution (which is questionable), you can't roll it over.

I don't want to put it into a traditional IRA. I want to put it into a Roth, which is always funded on an after tax basis.

The after tax money can never be rolled into an IRA.

Any type, any time. Only the taxable portion of a distribution is eligible for rollover.

IN addition, you can never go directly from a 401k into a Roth. You have to put it into a traditional IRA first and then convert it.

Barry