Can an IRA w/ pre-tax and after tax money be rolled over as follows: Pre-tax $ to a qual plan that accepts only pretax $, and after-tax portion rolled to another IRA, which is later converte

[Guest MTH]

I'm trying to determine whether my client can distribute 100% of his IRA, and rollover 100% of his IRA, but designate the rollover such that only the pretax portion of his IRA is transferred to a qual plan that accepts only pre-tax money and the after tax $ gets rolled over to another IRA.

The goal is to avoid prorating the rollover so that he has to take a taxable distribution for a portion of the rollover to the qualified plan, solely because it does not accept after tax money.

Can he pick and choose which part of the account gets rolled over to the plan and to another IRA?

[Appleby]

Since after-tax assets cannot be rolled from an IRA to a qualified plan, the client can accomplish that be determining the balance that represents the pre-tax amount and rollover just that amount to the qualified plan. No need to distribute the after-tax amount …unless the client wants to use the amount and roll it back to the IRA within 60-days