A participant terminates, part of the account balance contains after-tax contributions. Can the participant directly rollover the taxable portion and keep the after-tax contributions (no earnings) or does the 72 pro rata rules apply?

There is no requirement that the after tax amounts be rolled over - in fact it makes sense not to roll over the a/t funds because no tax is paid and the participant gets use of the money. Finally A/t funds in an IRA are a pain to administer for rmd purposes because of the allocation rules.

Server crashed, I'll try again. I think they are fine to roll over without the pro rata treatment. IRC 402©(2), as amended by JCWAA 411(q), treats the distribution as being first attributable to the taxable portion of the distribution.