Felicia
Dec 15 2003, 03:57 PM
Assuming the employee retired and has a 401(k) account, can the RMD be satisfied by after-tax monies? Would the answer be the same if the monies were in an IRA that had pre and post tax monies?
Harwood
Dec 15 2003, 06:44 PM
After-tax money distribution can satisify RMD for a 401(k) plan.
mbozek
Dec 15 2003, 09:28 PM
There are PLRs that permit the entire RMD for the first year to consist of after tax contributions that are paid to the participant in a lum sum distribution.
Mike Preston
Dec 16 2003, 01:33 AM
In what circumstances can/may an IRA have post-tax monies?
Felicia
Dec 16 2003, 08:33 AM
If an individual made contributions to an IRA but was not allowed to take a tax-deduction, e.g., he was a participant in a plan and his income exceeded the permissible limits for the deduction.
A participant can have after-tax monies in a 401(k) if he defaulted on a loan then paid back the loan.
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