# Ater-tax 401k contribution conversion - does prorata rule apply?

**URL:** <https://discussion.mainstreetbusinesspodcast.com/t/ater-tax-401k-contribution-conversion-does-prorata-rule-apply/156>\
**Category:** Retirement Accounts and Strategies\
**Created:** [October 2, 2023, 2:31pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/ater-tax-401k-contribution-conversion-does-prorata-rule-apply/156 "2023-10-02T14:31:11Z")\
**Posts on this page:** 3\
**Page:** 1

<div class="post-metadata">

**Author:** ![cleon](https://avatars.discourse-cdn.com/v4/letter/c/c0e974/32.png) [@cleon](https://discussion.mainstreetbusinesspodcast.com/u/cleon)\
**Post date:** [October 2, 2023, 2:31pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/ater-tax-401k-contribution-conversion-does-prorata-rule-apply/156/1 "2023-10-02T14:31:11Z")

</div>

Are there consequences if I have a balance in my pre-tax 401k account when I rollover my after-tax contributions to Roth?

I’m getting conflicting information that suggests this would be treated the same as Roth IRA conversions. For example, I’d have to include some of the pre-tax contributions in the conversion based on the pro-rata balances at the time of the conversion. This would mean some of the conversion would be recognized as taxable income.

---

<div class="post-metadata">

**Author:** ![jguagliardo2212](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@jguagliardo2212](https://discussion.mainstreetbusinesspodcast.com/u/jguagliardo2212)\
**Post date:** [October 9, 2023, 12:22pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/ater-tax-401k-contribution-conversion-does-prorata-rule-apply/156/2 "2023-10-09T12:22:40Z")

</div>

This is exactly what I was thinking but he didn’t touch on it

---

<div class="post-metadata">

**Author:** ![system](https://us1.discourse-cdn.com/flex046/uploads/msbpod_openforum/original/1X/42f4af5f452c22dd6feece9c5b47d6a5185fa706.png) [@system](https://discussion.mainstreetbusinesspodcast.com/u/system)\
**Post date:** [November 3, 2023, 6:38pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/ater-tax-401k-contribution-conversion-does-prorata-rule-apply/156/3 "2023-11-03T18:38:58Z")

</div>

Thank you so much. Just replied to your question on the Directed IRA Podcast on 11/3. Should be published in the next 2-3 days. Please get over to our ‘sister podcast’ - The Directed IRA Podcast. THANKS AGAIN!! Mark and Mat