Jump to content
Cobras59

Correction of Ineligible After Tax rollover to 403b plan

Recommended Posts

It was discovered in 2019 that a rollover received in 2017 from an outside plan into a 403b plan included after tax contributions.  The Plan that received the rollover specifically says in the document and SPD that it does accept after-tax dollars as rollovers into the Plan.  Can the current Plan distribute the ineligible after tax money to the participant, with earnings, and do 1099R for the current calendar year?  Or does the plan try and send the ineligible after tax funds back to the original plan and ask them to correct the 2017 1099R?  What about the earnings?  Are they taxed in the year distributed, or 2019? 

Could the participant do an In Plan Roth Rollover or Transfer in the current Plan?  

Share this post


Link to post
Share on other sites
4 hours ago, Cobras59 said:

  The Plan that received the rollover specifically says in the document and SPD that it does accept after-tax dollars as rollovers into the Plan.

Not? 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...