IRA Rollover into a 401(k) Plan

[Alex Daisy]

Can a participant do a Rollover from an IRA into a Qualified Plan?

[masteff]

EGTRRA relaxed the restrictions on IRA rollovers to QPs. No longer does it have to be a conduit IRA.

However, cannot rollover non-deductible contributions (aka, basis).

Also, it's not mandatory that the QP accept the rollover. Have to verify w/ the receiving plan first.

See page 24 of IRS Pub 590 http://www.irs.gov/pub/irs-pdf/p590.pdf

And this rollover chart is help but very high level: http://www.irs.gov/pub/irs-tege/rollover_chart.pdf

[Guest Sieve]

Actually, assuming the qualified plan agrees to accept non-deductible (after-tax) IRA contributions and accounts for them separately from deductible or pre-tax IRA assets, then you also can rollover those non-deductible amounts into a qualified plan.

[Kevin C]

Sieve,

You can roll after tax amounts from a qualified plan to another qualified plan if the receiving plan separately accounts for the after-tax portion.

As Masteff mentioned, you cannot rollover after-tax amounts from an IRA into a qualified plan. See IRC 408(d)(3)(A)(ii).

[Guest Sieve]

Once again, I stand corrected. The reason I'll claim I was wrong: the rollover rules continue to be convoluted, inconsistent and clear as mud! The real reason: Just blew it!