Felicia Posted December 15, 2003 Posted December 15, 2003 Assuming the employee retired and has a 401(k) account, can the RMD be satisfied by after-tax monies? Would the answer be the same if the monies were in an IRA that had pre and post tax monies?
Harwood Posted December 15, 2003 Posted December 15, 2003 After-tax money distribution can satisify RMD for a 401(k) plan.
mbozek Posted December 16, 2003 Posted December 16, 2003 There are PLRs that permit the entire RMD for the first year to consist of after tax contributions that are paid to the participant in a lum sum distribution. mjb
Mike Preston Posted December 16, 2003 Posted December 16, 2003 In what circumstances can/may an IRA have post-tax monies?
Felicia Posted December 16, 2003 Author Posted December 16, 2003 If an individual made contributions to an IRA but was not allowed to take a tax-deduction, e.g., he was a participant in a plan and his income exceeded the permissible limits for the deduction. A participant can have after-tax monies in a 401(k) if he defaulted on a loan then paid back the loan.
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