New Rules For 401(k) After-Tax Rollovers (Forbes Article)

October 1, 2014 - Posted by: admin - In category:

taxes - No Responses

The IRS recently issues new guidelines relating to rollovers of after-tax monies in 401(k) accounts.  To summarize, you are now permitted to take after-tax money from your 401(k) retirement account and roll it over into a Roth IRA, where it can then grow tax-free.  Through this process, you are NOT required to pay pro rata taxes on the distribution.

There is a good summary article on this topic, which appeared on Forbes on September 19, 2014.

CLICK HERE TO READ THE FORBES ARTICLE  

This is a good reminder that the tax laws and other laws relating to retirement accounts, general financial planning and overall estate planning are constantly changing and you should have regular contact with your estate planning attorney, your accountant and your financial adviser, to ensure that your portfolio and your estate plan is consistent with the current state of these laws.

Please contact us with any questions.

You will also want to discuss with your accountant and/or your financial adviser.

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