Some employers (and some tax professionals) may not realize that separate
subaccount treatment is permitted, or may mistakenly believe it is available only for in - service distributions.
For the benefit of those employers and tax professionals we have a separate page explaining the legal basis for separate
subaccount treatment.
Explanation of the legal basis for separate
subaccount treatment of post-1986 after - tax contributions to employer plans.
Employers can and should make separate
subaccount treatment available for all non-annuity distributions to current or former employees from employer plans that permit after - tax contributions.
There is some confusion as to the availability of separate
subaccount treatment for after - tax contributions to employer plans.