Can I take a distribution from my 401k after tax account with my curre

[Guest twlowe]

I have a portion of my 401k plan with my current employer in an after tax account, more than $4K. From the plan there are a few limited distributions options that I have however there appears to be no distribution restrictions on my After Tax contributions to this 401k plan except that I will owe taxes on any earnings on those after tax contributions if I take a distribution.

Can I remove the entire balance, pay taxes on the earnings and place them into a Roth in less than 60 days and not have to pay penalities on the earnings? Is there a limit to the amount that I can convert ($2K/yr)? If there is a limit can I take out the same amount and put it in a Roth for my wife, up to the limit, or can I only use those funds for my Roth, if at all?

If I had let's say $10K balance in my after tax 401K account($6K original/$4K earnings), can I take a distribution for the entire amount pay taxes on the $4K invest the balance in a Roth in less than 60 days an keep the $6k out with no penalties?

[BPickerCPA]

The after tax money can never be rolled into an IRA. So even if you can take the distribution (which is questionable), you can't roll it over.

[Guest twlowe]

I don't want to put it into a traditional IRA. I want to put it into a Roth, which is always funded on an after tax basis.

[BPickerCPA]

The after tax money can never be rolled into an IRA.

Any type, any time. Only the taxable portion of a distribution is eligible for rollover.

IN addition, you can never go directly from a 401k into a Roth. You have to put it into a traditional IRA first and then convert it.

Barry