401(k) after-tax merged w/ pre-tax

Financial Planning Tax Strategies
1

DH had a 401(k) of which 99% was pre-tax (taxable) contributions and 1% was after-tax (non-taxable) contributions.

DH wanted the taxable contributions to be rolled over into his existing Traditional IRA and the non-taxable contributions to be rolled over into his existing Roth IRA.

However, all of it was rolled over into his Traditional IRA together. This happened last week so he is well within the 60 day window.

Is there any way to transfer the non-taxable contribution from his Traditional IRA into his Roth IRA without triggering a tax problem? He doesn’t like the idea of the fractional reporting with Form 8606 and wants to do it all at once.

Thanks,
Wendy

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Is there any way to transfer the non-taxable contribution from his Traditional IRA into his Roth IRA without triggering a tax problem?

Sorry, but not without getting the 401(k) administrator and/or the IRA custodian to fix the original transfer. He now has a T-IRA with basis. Any conversions/transfers ade by him from his T-IRA into his Roth will be prorated based on the percentage that is basis. All withdrawals from now on will need to be adjusted for that basis.

AJ

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