I think my bigger question is...did the broker screw this up back in 2012 when they transferred the after-tax money into a Traditional IRA? Seems like they did. Seems like those funds should have went into a Roth IRA since they were after tax contributions. IRS doesn't know that the funds in the one Traditional IRA were sourced to after-tax money while it was in his 401k. So, I'm not sure what happens now when that Traditional IRA is converted to a Roth? He'll pay tax on after-tax money!?