Roth 401k In-Service

[austin3515]

Participant is rolling a portion of her balance from her Roth 401k account to a Roth IRA. Do I transfer a ratable portion of the basis? I couldn't fid anything on tis scenario in the EOB. Can anyone point me to some literature?

[GMK]

May be some help in the

Rollovers from Designated Roth Accounts section

in this:

http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts#rollovers

[austin3515]

Helpful but not totally on point. Nothing addresses a partial distribution as a rollover to a Roth IRA. Do the basis recovery rules apply? The rollovers discussed only involve 100% closing of the Roth 401k account...

[Belgarath]

http://www.irs.gov/Retirement-Plans/Rollovers-of-After-Tax-Contributions-in-Retirement-Plans

Excerpt below

Can I roll over just the after-tax amounts in my retirement plan to a Roth IRA and leave the remainder in the plan?

No, you can’t take a distribution of only the after-tax amounts and leave the rest in the plan. Any partial distribution from the plan must include some of the pretax amounts. Notice 2014-54 doesn’t change the requirement that each plan distribution must include a proportional share of the pretax and after-tax amounts in the account. To roll over all of your after-tax contributions to a Roth IRA, you could take a full distribution (all pretax and after-tax amounts), and directly roll over:

• pretax amounts to a traditional IRA or another eligible retirement plan, and
• after-tax amounts to a Roth IRA.

[austin3515]

Thanks!!!

[austin3515]

hmmm... Now how the heck am I supposed to keep track of the basis? Somehow I need to know on my side that she has distributed some of her basis