S**C
发帖数: 2964 | 1 Now, the IRS is letting 401(k) participants transfer after-tax contributions
to a Roth IRA, where the money can grow tax-free. Whereas in the past,
anyone who did this had to transfer or “convert” some pretax money to the
Roth and pay income tax, it’s now possible to skip the tax entirely, says
Ed Slott, an IRA expert in Rockville Centre, N.Y.
It’s important to keep some rules in mind. Before moving after-tax
contributions to a Roth, those 59½ or older must first transfer their
pretax savings to a traditional IRA. If you want to move only some of your
pretax 401(k) money—say, for example, half of it—into a regular IRA, you
may move only the same proportion (i.e., half) of your after-tax balance
into a Roth, says Mr. Slott. If you’re younger than 59½, you may be
able to move all of your after-tax money without transferring any pretax
dollars. Not all plans allow employees to withdraw funds before age 59½
, says Mr. Slott. | S**C
发帖数: 2964 | 2 The new rules are all spelled out in Notice 2014-54.
The employee’s 401(k) balance consists of $200,000 of pretax amounts and $
50,000 of after-tax amounts (it does not include a Roth subaccount). The
employee separates from service (i.e. quits, retires, or is fired) and
requests a distribution of $100,000. The pretax amount of the distribution
is $80,000 (four-fifths) and the after-tax amount of the distribution is $20
,000 (one-fifth). The happy resolution: “The employee is permitted to
allocate the $80,000 that consists entirely of pretax amounts to the
traditional IRA so that the $20,000 rolled over to the Roth IRA consists
entirely of after-tax amounts.
I will contribute to after-tax 401(k) on top of my pre-tax 401(k)
contribution from my paycheck next year when rules take effect! Hooray! | S**C
发帖数: 2964 | 3 My research says only the "basis" can be moved to ROTH, but still,
worthwhile. | s**********d
发帖数: 36899 | 4 可惜我们现在俩公司都给了ROTH就把after tax给取消了。
【在 S**C 的大作中提到】
: The new rules are all spelled out in Notice 2014-54.
: The employee’s 401(k) balance consists of $200,000 of pretax amounts and $
: 50,000 of after-tax amounts (it does not include a Roth subaccount). The
: employee separates from service (i.e. quits, retires, or is fired) and
: requests a distribution of $100,000. The pretax amount of the distribution
: is $80,000 (four-fifths) and the after-tax amount of the distribution is $20
: ,000 (one-fifth). The happy resolution: “The employee is permitted to
: allocate the $80,000 that consists entirely of pretax amounts to the
: traditional IRA so that the $20,000 rolled over to the Roth IRA consists
: entirely of after-tax amounts.
| S**C
发帖数: 2964 | 5 Given our current income falls into AMT exemption phase-out range, ROTH 401(
k) makes no sense to us vis-à-vis traditional 401(k). | f*******n
发帖数: 12623 | 6 I wish they would do the same thing with pre-tax and after-tax money in
Traditional IRAs. |
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