An after-tax 401(k) account.

[joel]

If a lump-sum settlement of the account is taken, may the taxable portion (earnings) be rolled over to a Traditional IRA?

[ESOP Guy]

I was thinking the whole thing can be sent to an IRA any more but I am doing this from memory. (I am assuming by after-tax you do NOT mean Roth 401(k) but old fashion after-tax)

The best place to look for your answer in my opinion is the IRS safe harbor distribution notice you are suppose to give to everyone getting a distriubtion form. A little wordy but in 7-8 pages it answers the most common questions about taxes, distribuitons and rollovers. I believe you will find your question covered.

[joel]

I was thinking the whole thing can be sent to an IRA any more but I am doing this from memory. (I am assuming by after-tax you do NOT mean Roth 401(k) but old fashion after-tax)

The best place to look for your answer in my opinion is the IRS safe harbor distribution notice you are suppose to give to everyone getting a distriubtion form. A little wordy but in 7-8 pages it answers the most common questions about taxes, distribuitons and rollovers. I believe you will find your question covered.

This Lump-sum settlement is coming from an after-tax 401(k) plan which is subject to a $51,000 415© contribution limit for 2013. I guess this is the "old fashion after-tax plan" you mention.