diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
index b5347ea5964..0b6433513f5 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
@@ -70,7 +70,13 @@ fun ExtractionGeneratorConfiguration.getDeclarationText(
     return CallableBuilder(builderTarget).let { builder ->
         builder.modifier(descriptor.visibility)
 
-        builder.typeParams(descriptor.typeParameters.map { it.originalDeclaration.getText()!! })
+        builder.typeParams(
+                descriptor.typeParameters.map {
+                    val typeParameter = it.originalDeclaration
+                    val bound = typeParameter.extendsBound
+                    typeParameter.name + (bound?.let { " : " + it.text } ?: "")
+                }
+        )
 
         fun JetType.typeAsString(): String {
             return if (isSpecial()) DEBUG_TYPE_REFERENCE_STRING else descriptorRenderer.renderType(this)
diff --git a/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt b/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt
new file mode 100644
index 00000000000..4dd0ab516db
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt
@@ -0,0 +1,13 @@
+// PARAM_DESCRIPTOR: val e: T? defined in EntityClass.foo
+// PARAM_TYPES: T?, Entity?
+// SIBLING:
+abstract public class EntityClass<out T: Entity>() {
+    fun foo() {
+        val e: T? = null
+        <selection>e?.value</selection>
+    }
+}
+
+open class Entity {
+    var value: String? = null
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt.after b/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt.after
new file mode 100644
index 00000000000..004ba7e5381
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt.after
@@ -0,0 +1,17 @@
+// PARAM_DESCRIPTOR: val e: T? defined in EntityClass.foo
+// PARAM_TYPES: T?, Entity?
+// SIBLING:
+abstract public class EntityClass<out T: Entity>() {
+    fun foo() {
+        val e: T? = null
+        __dummyTestFun__(e)
+    }
+}
+
+private fun <T : Entity> __dummyTestFun__(e: T?) {
+    e?.value
+}
+
+open class Entity {
+    var value: String? = null
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/JetExtractionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/JetExtractionTestGenerated.java
index 8a115ac8f4d..9525d80fa4f 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/JetExtractionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/JetExtractionTestGenerated.java
@@ -2292,6 +2292,12 @@ public class JetExtractionTestGenerated extends AbstractJetExtractionTest {
                 doExtractFunctionTest(fileName);
             }
 
+            @TestMetadata("noVarianceInFun.kt")
+            public void testNoVarianceInFun() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/typeParameters/noVarianceInFun.kt");
+                doExtractFunctionTest(fileName);
+            }
+
             @TestMetadata("simpleTypeParameter.kt")
             public void testSimpleTypeParameter() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/typeParameters/simpleTypeParameter.kt");