Question that I could use some clarification on. Individual who is under 50 has separated service from former employer.
Retirement plan assets include both Traditional 401(k) and Roth 401(k).
The rollover option exists and the big question is if the Roth 401(k) is rolled over into Roth IRA are there any tax consequences?
Some information in tax notice says "after tax contributions included payment from designated Roth account are not taxed, but earning might be taxed."
Can you please clarify tax consequences on Roth 401(k) rollover into Roth IRA. And also, I assume there would be 2 separated Rollovers involved as well, Traditional 401(k) into Traditional IRA and Roth 401(k) into Roth IRA...and I assume that's not an issue.
Thank you for your help in advance.