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Transfer After-Tax Retirement Funds to Roth?


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Guest Bill Buschmeier
Posted

Until about 1998, employees of tax-exempt trade associations could NOT contribute pre-tax dollars into a 401k. They could, however, contribute on an after-tax basis.

Upon withdrawal, employer matching funds and all earnings are taxable. The employee's after-tax contributions, however, are not.

Is it possible to transfer the after-tax funds into a Roth? If so, what's involved?

Posted

You cannot roll over after tax money.

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Barry Picker, CPA/PFS, CFP

New York, NY

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

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