IRS Issues Proposed Rules on Allocation of After-tax Amounts from Roth Accounts | Practical Law
The Internal Revenue Service (IRS) issued proposed rules that would remove the current allocation rule and treat distributions from a Roth account made to multiple destinations as a single distribution beginning on January 1, 2015. In conjunction, the IRS issued Notice 2014-54 which explains the new allocation rules for after-tax and pre-tax amounts.