"anoop" <ghanwani[at]gmail.com> wrote in message
news:1157202458.759266.233500[at]i42g2000cwa.googlegroups.com...
- quote -

If the plan accepts post-tax contributions, the IRS requires the plan to
track them separately. See, e.g.
http://benefitsattorney.com/modules....howpage&pid=27
(penultimate bullet item under heading IRS Notice 2002-3)

I don't see any difference between this and other employer-sponsored plans
that mix pre- and post-tax moneys. Two examples: thrift plans that allow
employees to make post-tax contributions, and new Roth 401(k) plans
(post-tax) that include profit sharing (pre-tax). So companies already have
tracking mechanisms in place (or know how to implement them).

If you are asking how the employer would know how much of the rollover was
post-tax, that's a good question. The ICI asked the same question in 2001,
and I haven't found an answer.
http://ici.org/statements/cmltr/01_t...rmtsp_com.html

My guess (strictly a guess) is that most plans won't accept post-tax
rollover moneys - if for no other reason than this will require a
modification to their plan documents, even if they already handle post-tax
contributions.

What happens if the plan doesn't accept post-tax rollovers? Then you can
roll-over just the pre-tax money, leaving the post-tax money behind. See
http://www.groom.com/_library/downlo...ting%20(3).pdf (Groom Law
Group), p. 5, with a note stating: "The rollover amount from an IRA is
deemed to come first from amounts other than nondeductible contributions."

- quote -

Why not? For most purposes, there is no longer such a thing as a rollover
(conduit) IRA. I emphasize for MOST purposes, because special capital gains
treatment and 10 year averaging is lost if moneys are comingled. But most
people don't qualify for these treatments anyway.

Mark Freeland
BnetOnewsX[at]sbcglobal.net

David Efflandt wrote:
- quote -

If someone made post-tax contributions to a traditional IRA and
then rolled that over into an employer plan, how would that work
in terms of tracking for tax purposes?

Is it possible to make post-tax contributions to a rollover IRA?

Anoop

On Fri, 1 Sep 2006, l0200100[at]yahoo.com <l0200100[at]yahoo.com> wrote:
- quote -

Earlier regulations required a Rollover IRA if you wanted to hold
retirement funds from a previous employer to possibly roll over into the
retirment plan of a current employer. However, it is no longer necessary
to keep Rollover IRA money isolated from Traditional IRA contributions,
since you can now roll either into an employer sponsored retirment plan.
Although, leaving it in any IRA likely gives you more investment options
than most company plans.

I ran into this when I opened a Rollover IRA, and then could not remember
which of my IRA's from over 20 yrs ago was from when our company
discountinued our retirement plan some time before they started our
401(k). And it was probably comingled with other contributions anyway.
When thinking maybe I should change that to traditional instead, Fidelity
they said there was no longer any difference.

<l0200100[at]yahoo.com> wrote in message
news:1157083782.502070.152610[at]p79g2000cwp.googlegroups.com...
- quote -

The norm is to open a Rollover IRA because 401(k) plans rolled over into a
Rollover IRA can also get rolled into a new employer's 403(b), 401(k) or 457
plans.

I have a Rollover IRA with Brokerage A. It contains money from my
previous two employer's 401k plans.

I am wanting to move all my money to Brokerage B because they have
better service.


When I open my IRA account at Brokerage B to transfer the assets to,
should I open a Rollover IRA account or a Traditional IRA account?
Does it even matter since they are basically the same thing? Or is
there an advantage to opening one over the other? Thanks