Previously I contributed money to a traditional IRA. My earliest contributions were tax deductible, but over time, my income grew and I became inelligible to deduct my contributions. However, as I had extra money I made some post/after tax contributions to the traditional IRA. I believe I filed form 8606(?) with my federal taxes to show these were post tax contributions.

My current employer will allow me to move pre tax money and earnings from my IRA into my 401-K. My employer will not allow me to move my post tax money into the 401-K. If I were to determine the amount of my post tax contributions to the IRA and ask the custodian of my IRA to move everything but that amount into my 401-K, would that be ok? I ask because it is my understanding that when you withdraw money from a “co-mingled” IRA, you do not get to pick if you are pulling out pre and post tax $–instead some of the money is pre tax and some post tax based on the ratio of pretax/posttax money in the account. Obviously, you would pay income tax on the pre tax withdrawls. If this is more or less correct, would it be applicable to my desire to move money from my IRA to 401-K? Would I have to pay income tax, and maybe penalty on this sort of transaction becasue I have post tax money in my IRA?

Thanks![/b]