After-Tax Roth Conversion/Rollover

[BTH]

A participant in a 401(k) has an old IRA account which consists of non-deductible after-tax contributions and the earnings. She wants to do a Roth conversion of the IRA, but only for the basis and wants to rollover the taxable portion (earnings) to her 401(k) account. The 401(k) does allow for rollovers from IRA accounts, as long as it's otherwise includible in gross income (i.e. no after-tax money allowed). The 401(k) does not have Roth provisions.

For those of you who deal with Roth conversions, does this sound like it would work?

Thanks.

[mbozek]

A participant in a 401(k) has an old IRA account which consists of non-deductible after-tax contributions and the earnings. She wants to do a Roth conversion of the IRA, but only for the basis and wants to rollover the taxable portion (earnings) to her 401(k) account. The 401(k) does allow for rollovers from IRA accounts, as long as it's otherwise includible in gross income (i.e. no after-tax money allowed). The 401(k) does not have Roth provisions.

For those of you who deal with Roth conversions, does this sound like it would work?

Thanks.

If the pre tax funda are rolled over to the 401k plan by 12/31/10 the AT funds can be rolled over to a Roth IRA in 2011 w/o the pre tax runds being aggregated with the AT funds under the pro rata rule.