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After Tax Contribution

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Bypacificlou

L1: After Tax ContributionI was informed that upon retirement in 2 years (56 years old) I would be given my after tax contribution in a lump sum, around $50,000. Will I be taxed with this sum or is it tax free money.
Will I get only what I invested or what I accumulated in interest over the time I’ve had it?2005-01-11 22:07, By: pacificlou, IP: [66.214.71.124]

L2: After Tax ContributionHello pacificlou:
Generally what happens is that your lifetime-to-date “after-tax” contributions are distributed to you as a tax free distribution as these $$$ were already taxed when contributed. Then, again usually, the earnings on your after-tax contributions are added to your before-tax contributions; earning on those, profit sharing/matching $$$. etc. and all of the before-tax $$$ are rolled over to an IRA.
You need to check with your plan administrator for the details.
TheBadger
wjstecker@wispertel.net
2005-01-12 11:49, By: TheBadger, IP: [66.250.23.21]

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