rollover of Roth to 401(k)

[k man]

can a person roll his Roth IRA into a qualified plan if the plan permits?

[MGB]

No.

But they might be able to in 2006 and later when the EGTRRA provision comes into play allowing Roth-style accounts within a 401(k).

If a 401(k) plan sets up separate, deemed IRA-style accounts (new this year), then Roth IRAs are allowed along with traditional. The person can roll over their Roth into these Roth IRAs inside the 401(k), but this is not "rolling it into the qualified plan". The qualified plan and the deemed IRA accounts are still separate.

[pmacduff]

MGB - Does that mean that the ROTH assets would not be tracked as part of the 401(k) plan assets? Our clients will have these monies tracked in a separate designated source. I have my first client inquring as to a participant rolling her ROTH IRA into her 401(k) account. Thanks in advance.

[mbozek]

Even if it could be done, what advantage is there to transfering after tax money which can be distributed at any time to a 401(k) plan? Earnings on the roth funds will not be subject to income tax while earnings on after tax contributions in a qualified plan will be taxed at ordinary income tax rates. I dont know of any advantage for an employer to add deemed IRA accounts to the existing 401(k) plan.