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- Jan 17, 2012
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Hi,
From a tax perspective, how do I account for taxes already paid in a previous Roth 401k contribution that was commingled with a Traditional 401K plan?
When I worked at Employer G, I contributed to both a Traditional (pre-tax) 401K & Roth (post-tax) 401k in two different accounts.
When I moved from Employer G to Employer M, I rolled over 100% of both 401k. Unfortunately, Employer M commingled both Traditional and Roth into one account, but kept account of what $ amount is taxable and what $ is non-taxable.
Employer M recently told me if I want to rollover my 401k into an IRA, it is impossible to split the funds into a Traditional IRA & a Roth IRA. I can download a live statement of the taxable portion and non-taxable portion to prove the amount that is no longer taxable.
The brokerage I set up a Traditional IRA account and a Roth IRA informed me if I rollover the full amount, I can fill out a form and transfer the Roth 401K portion into a Roth IRA, but will need to fill out a form for the IRS to indicate that the Roth Conversion was not truly a conversion, as the funds had already been taxed.
How do I do this?
What will the IRS do?
What other steps are necessary?
Any and all insight is appreciated.
From a tax perspective, how do I account for taxes already paid in a previous Roth 401k contribution that was commingled with a Traditional 401K plan?
When I worked at Employer G, I contributed to both a Traditional (pre-tax) 401K & Roth (post-tax) 401k in two different accounts.
When I moved from Employer G to Employer M, I rolled over 100% of both 401k. Unfortunately, Employer M commingled both Traditional and Roth into one account, but kept account of what $ amount is taxable and what $ is non-taxable.
Employer M recently told me if I want to rollover my 401k into an IRA, it is impossible to split the funds into a Traditional IRA & a Roth IRA. I can download a live statement of the taxable portion and non-taxable portion to prove the amount that is no longer taxable.
The brokerage I set up a Traditional IRA account and a Roth IRA informed me if I rollover the full amount, I can fill out a form and transfer the Roth 401K portion into a Roth IRA, but will need to fill out a form for the IRS to indicate that the Roth Conversion was not truly a conversion, as the funds had already been taxed.
How do I do this?
What will the IRS do?
What other steps are necessary?
Any and all insight is appreciated.