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IRS Issues Guidance Permitting Rollovers of After-Tax Contributions to Roth IRAs


October 2014

The IRS issued proposed regulations and accompanying Notice 2014-54 permitting rollovers of after-tax contributions in retirement plans to Roth IRAs. The Notice also provides guidance and examples of how to handle simultaneous disbursements of pre-tax and after-tax amounts to different destinations. The Notice states that a transaction involving multiple disbursements should be treated as a single distribution, but each disbursement must be reported on a separate Form 1099-R.

The guidance applies to distributions made on or after January 1, 2015, but plan administrators may rely on the guidance for distributions that are made on or after September 18, 2014.

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