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Where Taxpayers and Advisers Meet

Roth IRA ( rolled-over 401k) taxation

Alfie23
Posts:2
Joined:Sat Jul 15, 2023 3:45 pm
Roth IRA ( rolled-over 401k) taxation

Postby Alfie23 » Sat Jul 15, 2023 3:49 pm

I worked in USA for a few years in early 90s during which time I funded a 401k with post-tax earnings.

In mid 2018 at age 59 3/4, this was rolled-over into a ROTH IRA; I was informed that the drawdown/closure of this account would NOT be taxable in USA if the monies remained there for 5 full tax years. Does this sound correct?

As the monies are already taxed before depositing in the 401k/Roth, I assume that only investment gains would be reportable as income to HMRC?

Tia,
Alf

DavidTreitel
Posts:270
Joined:Thu Aug 16, 2012 4:31 pm

Re: Roth IRA ( rolled-over 401k) taxation

Postby DavidTreitel » Mon Jul 17, 2023 9:43 pm

The conversion in 2018 was subject to US tax. Was a 2018 US tax return filed? If not, you'd want to file this now.

Alfie23
Posts:2
Joined:Sat Jul 15, 2023 3:45 pm

Re: Roth IRA ( rolled-over 401k) taxation

Postby Alfie23 » Mon Jul 17, 2023 10:06 pm

The conversion in 2018 was subject to US tax. Was a 2018 US tax return filed? If not, you'd want to file this now.
Hi David,
yes, the rollover from the 401k to Roth IRA was included in my 20128 IRS return; apologies for not mentioning this.

Alfie


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