Hi All -
Can someone rollover from a Roth 401-K directly into a Roth IRA (and recognize the employer contributions as taxable at that time)? I don't see why not, but I can't find anything on it. The client thinks he might have to roll it over into a traditional IRA first.
Thanks.
The Employer match doesn't go into the Roth 401(k), it's deposited into the Traditional 401(k) side of the account.
And transferring the to a traditional IRA is a taxable event. I'd prefer to first transfer it to a traditional IRA, but either way, just be mindful of the amount of money that will be subject to tax.
I don't know the answer to your main question, but I believe there is no such thing as employer contributions in a Roth 401(k). Employers who offer this feature are actually placing those contributions into a conventional 401(k).
Steve
Yes. You can see this on the IRS rollover to and from chart.
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As others have said, there are no employer contributions to a Roth 401K. Employer matches would go into a standard 401(k) pre-tax.
Yes. You can see this on the IRS rollover to and from chart.
Therefore, watch out for the moron-squad at your custodian....
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