After tax rollover to Roth IRA

[perkinsran]

A participant has after tax moneys (non-Roth) in a 401k of $10,000. 401k portion is $90k. The employee is over 59 1/2. Can the employee take a $10k distribution from after tax portion and roll over to a Roth IRA? If yes does it matter if the person is under 59 1/2 and the plan allows after tax distributions? Finally, if yes, can the person do it every year?

[QDROphile]

For post-1986 after tax accounts, any distribution must include a proportionate share of related earnings. If the entire after-tax amount is distributed, the entire amount of related earnings must be distributed. Your analysis then shifts to the new rollover guidance to get you where you want to go. As always, plan terms matter.