AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question Is it advisable to rollover the portion of a 401k contributed aftertax into a Roth IRA next year, or take the aftertax proceeds in the form of a check now and rollover the pretax contributions into a traditional IRA?
Answer Hi Larry,
If you don't need these funds or will face early withdrawal penalty you will probably want to rollover both your pretax and after tax funds. If you receive a check for your after tax contributions, you may face an early withdrawal penalty. Also, you would only be able to make a normal Roth contribution next year which is currently $5k or $6k if you are over 50. So if you have more that $5 or $6k in your after tax account, you would be doing yourself a disservice. Unless you needed these funds there would really be no point in taking a check. I hope this helps. Good luck!
