Jump to content

Recommended Posts

Posted

A single member business guy setup a plan (Solo) and rolled into the plan old pension money he had from when he worked somewhere else.  He is telling me some of the money is Voluntary After Tax contribution money... not Roth deferrals.  He took a distribution from the VAT money rolled into the plan.  Do you treat VAT distributions the same way you treat Roth distributions?

Posted

VAT would create a basis in the Plan. 

I'd ask for the 1099-R showing the non-taxable basis. I believe it would have been reported on Box 5.

The distributions coming out are generally required to be pro-rated between basis and earnings. 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use