Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
401a rollover??
Old 11-25-2006, 06:30 PM   #1
Dryer sheet aficionado
 
Join Date: Nov 2006
Posts: 29
401a rollover??

I have an account with a previous employer that I would like to rollover, eventually into a Roth IRA. It is a 401(a). The part I'm confused about is that my contributions were after tax; it has employee matched funds; and of course has grown some due to capital gains, etc... Can I roll this? Do I pay taxes on the employer match and the gains if rolled into Roth??

Thanks for help/advice,
SlowTwitcher
__________________

__________________
SlowTwitcher is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: 401a rollover??
Old 11-25-2006, 08:30 PM   #2
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: 401a rollover??

If you have a 401k, all of the contributions should be before tax. If you roll it over to a regular IRA, you will have no taxes due. If you roll the IRA to a Roth IRA, you will pay your normal income tax rates. Be sure you are eligable to roll over your IRA before you do because the penalties are very high.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: 401a rollover??
Old 11-25-2006, 10:53 PM   #3
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: 401a rollover??

Quote:
Originally Posted by 2B
If you have a 401k, all of the contributions should be before tax.
Depends on the company. FIL had a 401(k) that allowed additional after-tax contributions. But I agree that most 401(k)s are a combination of employee before-tax contributions and the employer match.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: 401a rollover??
Old 11-26-2006, 08:35 AM   #4
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: 401a rollover??

Slowtwitcher has a 401(a) rather than a 401(k) so it is common that the employee contributions are after tax. You should be able to get a breakdown from the employer as to the amount in the account attributible to pretax contributions and amount attributible to post tax contributions. You will only have to pay tax on the amount attributible to the pretax portion and the growth.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: 401a rollover??
Old 11-26-2006, 08:58 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,317
Re: 401a rollover??

Quote:
Originally Posted by Martha
Slowtwitcher has a 401(a) rather than a 401(k) so it is common that the employee contributions are after tax. You should be able to get a breakdown from the employer as to the amount in the account attributible to pretax contributions and amount attributible to post tax contributions. You will only have to pay tax on the amount attributible to the pretax portion and the growth from the pretax contributions.
Does this means that contributions to a 401a plan are after tax?And is this the difference between a 401K and a 401a plans?
__________________
Corporateburnout is offline   Reply With Quote
Re: 401a rollover??
Old 11-26-2006, 09:55 AM   #6
Full time employment: Posting here.
bosco's Avatar
 
Join Date: Jul 2005
Posts: 987
Re: 401a rollover??

Quote:
Originally Posted by Corporateburnout
Does this means that contributions to a 401a plan are after tax?And is this the difference between a 401K and a 401a plans?
no

I have a 401a that is pretax.

I think 401a plans vary in how they are structured, and don't know if they can be after-tax, but most if not all are pre-tax.

the one I have is with a state government and is 'in lieu' of social security i.e. the employee and employer contributions are deposited in it.

__________________
I have an inferiority complex, but it's not a very good one.
bosco is offline   Reply With Quote
Re: 401a rollover??
Old 11-26-2006, 10:44 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,317
Re: 401a rollover??

Quote:
Originally Posted by bosco
no

I have a 401a that is pretax.

I think 401a plans vary in how they are structured, and don't know if they can be after-tax, but most if not all are pre-tax.

the one I have is with a state government and is 'in lieu' of social security i.e. the employee and employer contributions are deposited in it.

Thanks for the reply. My DD works for a university and I noticed that her contributions are in a 401a plans and her employers match are going into a 401k plans. I'll look into further.

__________________

__________________
Corporateburnout is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Seeking guidance on 401k rollover to Vanguard, please! Achiever51 FIRE and Money 7 03-15-2007 10:30 AM
IRA Rollover Jake46 FIRE and Money 11 02-06-2007 10:45 PM
401a WRBT FIRE and Money 2 11-05-2006 01:43 PM
Trade stocks in my rollover IRA? One4g Young Dreamers 1 01-30-2006 01:00 PM
401K: *Stay in or rollover (Beethoven) Dogcliff FIRE and Money 7 03-18-2004 06:58 PM

 

 
All times are GMT -6. The time now is 08:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.