My dad and grandmother passed away earlier this year and I'm in the process of helping my mom sort through and consolidate a mess of inherited accounts. We've made a lot of progress, but still have a few tricky accounts to figure out.
My dad had an old 401k that we've already completed the inheritance process on so the account is now in my mom's name. We recently took my dad's last RMD for this year from it (mom is not at RMD age yet, but dad hadn't taken his before he passed). The provider Alight's website is horrible so every task seems to require a very long phone call with representatives with long hold times. We asked the phone rep. to increase the default withholding on the RMD to help cover the taxes on some other unexpected income. Rep said no problem, but then called back later that day and said she couldn't do it because the RMD was actually nontaxable. Previous years RMDs from this account had taxes withheld. I think they likely goofed something up there, but it was a small RMD (~$2500) so hopefully not a huge deal.
We would like to just roll over this 401k to mom's own IRA at Fidelity and not have to deal with the provider Alight anymore. When I looked at the account statement and rollover page I thought there might be some after tax money that could go into a Roth IRA. I'm confused about the breakdown of funds in the account. What is on the account statement doesn't seem to match what is on the rollover page and I can't make the math work. The online rollover form doesn't let me select any options to accomplish what I think should be possible, so it'll likely take more phone calls. I'm new to all this and am maybe just not understanding how these things work. Anyone understand this makeup and if a split rollover of taxable to tIRA and nontaxable to Roth IRA is possible? I want to make sure that my ignorance and the possibly poorly trained phone rep I get don't screw something up. It also looks like the entire amount is in a 2015 target date fund, and no company stock from the employer is left.
From account page
Pre-tax $45,176.78
After-tax $3,300.36
Prior Company$14,441.49
Variable Match$2,191.10
Prior ESOP $225.01
QNEC $135.49
Total $65,470.23
On rollover page
taxable $41,560.40
nontaxable $23,909.83
total $65,470.23
My dad had an old 401k that we've already completed the inheritance process on so the account is now in my mom's name. We recently took my dad's last RMD for this year from it (mom is not at RMD age yet, but dad hadn't taken his before he passed). The provider Alight's website is horrible so every task seems to require a very long phone call with representatives with long hold times. We asked the phone rep. to increase the default withholding on the RMD to help cover the taxes on some other unexpected income. Rep said no problem, but then called back later that day and said she couldn't do it because the RMD was actually nontaxable. Previous years RMDs from this account had taxes withheld. I think they likely goofed something up there, but it was a small RMD (~$2500) so hopefully not a huge deal.
We would like to just roll over this 401k to mom's own IRA at Fidelity and not have to deal with the provider Alight anymore. When I looked at the account statement and rollover page I thought there might be some after tax money that could go into a Roth IRA. I'm confused about the breakdown of funds in the account. What is on the account statement doesn't seem to match what is on the rollover page and I can't make the math work. The online rollover form doesn't let me select any options to accomplish what I think should be possible, so it'll likely take more phone calls. I'm new to all this and am maybe just not understanding how these things work. Anyone understand this makeup and if a split rollover of taxable to tIRA and nontaxable to Roth IRA is possible? I want to make sure that my ignorance and the possibly poorly trained phone rep I get don't screw something up. It also looks like the entire amount is in a 2015 target date fund, and no company stock from the employer is left.
From account page
Pre-tax $45,176.78
After-tax $3,300.36
Prior Company$14,441.49
Variable Match$2,191.10
Prior ESOP $225.01
QNEC $135.49
Total $65,470.23
On rollover page
taxable $41,560.40
nontaxable $23,909.83
total $65,470.23
Statistics: Posted by NewbMo — Sun Dec 29, 2024 11:30 am — Replies 0 — Views 79