I'm 67 and retired now. My 401k consisted of 3 types of money.
1) After tax Roth 401k money
2) Pre-tax Traditional 401k money
3) After-tax non-Roth money. $14,500 ($5000 after tax contributions to a trad. 401k, $9500 associated earnings)
Over the last few years, I have directly rolled over my after-tax designated Roth 401k money into a Roth IRA. Similarly, I have rolled over the pretax traditional 401k money into a traditional IRA. Am now left with the pesky After-tax non-Roth money. From my research I see that IRS notice 2014-15 allows me to do a split rollover requested as a single distribution where the $9500 is directly rolled to a Traditional IRA and the $5000 directly rolled to a Roth IRA. The trouble is no one at Principal has any idea what I'm talking about. I've talked to several Principal Life senior CSR's. They want me to fill out confusing paperwork that doesn't seem to specifically address this situation and then attach a letter explaining what I want to do. My CPA has told me they will correct any mistakes made on the 1099 issued for this if I go through with it. The split rollover would be the optimal move financially, but I would sure hate to screw this up. Think I should go through with it or maybe just take a distribution and be done with it?
1) After tax Roth 401k money
2) Pre-tax Traditional 401k money
3) After-tax non-Roth money. $14,500 ($5000 after tax contributions to a trad. 401k, $9500 associated earnings)
Over the last few years, I have directly rolled over my after-tax designated Roth 401k money into a Roth IRA. Similarly, I have rolled over the pretax traditional 401k money into a traditional IRA. Am now left with the pesky After-tax non-Roth money. From my research I see that IRS notice 2014-15 allows me to do a split rollover requested as a single distribution where the $9500 is directly rolled to a Traditional IRA and the $5000 directly rolled to a Roth IRA. The trouble is no one at Principal has any idea what I'm talking about. I've talked to several Principal Life senior CSR's. They want me to fill out confusing paperwork that doesn't seem to specifically address this situation and then attach a letter explaining what I want to do. My CPA has told me they will correct any mistakes made on the 1099 issued for this if I go through with it. The split rollover would be the optimal move financially, but I would sure hate to screw this up. Think I should go through with it or maybe just take a distribution and be done with it?
Statistics: Posted by decades88 — Wed Jun 12, 2024 5:37 pm — Replies 0 — Views 33