Withdrawal of Pre-1987 "After Tax" Employee Contributions

[Guest EMC]

What is the tax treatment of a current year withdrawal of "after tax" employee contributions that were made to a qualified plan before 1987?

The participant wants to leave the earnings in the plan, but take out only that portion of his account balance on which he has already paid income tax (the "after tax" employee contributions made before 1987).

Thanks.

[Guest]

It depends on the terms of the plan as of May 5, 1986 . . .

See IRC section 72(e)(8)(D) and Notice 87-10.

[Guest EMC]

Harry O: Thanks for the cites. Just as a side note, the Notice is 87-13 rather than 87-10. I really appreciate the direcction.