Originally Posted by
kwri10s
I asked and Vanguard said we cannot convert the after tax contributions into the Roth 401k. Don't know if that's right, they've given me a whole bunch of wrong info the last week or so. But it sounds right.
Fedex allows you 2 in-service distributions each year from your after-tax account as long as the amount is at least $500. You can move that money into your Roth IRA if you have one. You'll pay taxes on any earnings, but it shouldn't be too much. This allows you to add more than $5500 to your IRA each year.
So ask Vanguard about an "in-service distribution of your after tax account to your IRA". I believe you can even roll the earnings to your normal IRA (not Roth) and not get taxed on anything. I just haven't done that myself.