Rollover from traditional IRA to 401(k) plan

[Guest TaxedToDeath]

A participant wants to rollover her traditional IRA to her employer's 401(k) plan.

The participant has made both deductible and nodneductible contributions to the traditional IRA.

The participant wishes to rollover ONLY the portion of the traditional IRA attributable to her deductible contributions, leaving the amount attributable to her nondeductible contributions (and their basis) behind in the traditional IRA.

Can she do this? Or does any amount distributed from the IRA, even if it is a rollover to a 401(k) plan, have to prorate the distribution between the deductible and nondeductible contributions? What if the 401(k) plan didn't accept rollover contributions of after-tax amounts?

[mbozek]

A participant wants to rollover her traditional IRA to her employer's 401(k) plan.

The participant has made both deductible and nodneductible contributions to the traditional IRA.

The participant wishes to rollover ONLY the portion of the traditional IRA attributable to her deductible contributions, leaving the amount attributable to her nondeductible contributions (and their basis) behind in the traditional IRA.

Can she do this? Or does any amount distributed from the IRA, even if it is a rollover to a 401(k) plan, have to prorate the distribution between the deductible and nondeductible contributions? What if the 401(k) plan didn't accept rollover contributions of after-tax amounts?

Only pre tax amounts can be rolled over from an IRA to a Q plan. Under existing rules all pre tax amounts are deemed to be rolled over from the IRA if the amount left in the IRA is equal to the AT contributions (Pub 590 P. 23).

[Guest PiggyBank]

Can she do this? Or does any amount distributed from the IRA, even if it is a rollover to a 401(k) plan, have to prorate the distribution between the deductible and nondeductible contributions? What if the 401(k) plan didn't accept rollover contributions of after-tax amounts?

TTD, mbozek is correct. See Code Section 408(d)(3)(H).