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URL:  http://boards.fool.com/it-is-my-understanding-that-i-can-contribute-up-30908803.aspx

Subject:  Re: After-Tax in-service rollover to Roth? Date:  10/6/2013  12:32 PM
Author:  aj485 Number:  73457 of 78168

It is my understanding that I can contribute up to $51,000 to a combination of my 401(k) and After-Tax accounts with my employer. My employer caps After-Tax (non-Roth) to 16% of pay. I am allowed to perform in-service withdrawals on After-Tax funds on a day-after basis. I understand that I can then transfer this to a Rollover Roth IRA account, allowing me to contribute more than the $5,500 limit into this.

I would suggest asking over on the Tax Strategies board http://boards.fool.com/tax-strategies-100155.aspx?mid=309083... and at Fairmark www.fairmark.com

Here is an article that suggested the strategy you are considering, but the update indicates that the IRS may treat rollovers to a Roth of after-tax amounts from 401(k)s by using the same pro-rated rules as IRAs do. http://www.kiplinger.com/article/retirement/T046-C000-S002-a...

Here is an article from Fairmark that indicates that it is possible to bypass the pro-rating rules if your after tax contributions are in a separate sub-account within the 401(k) http://fairmark.com/retirement/roth-accoun