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Old 09-30-2023 | 07:39 PM
  #13769  
Mach10
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Joined: Apr 2021
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Originally Posted by Bluedriver
In addition to what Flyby said, I do not believe you can designate company contributions to ROTH. Only your own contributions can be ROTH.
Company contributions by default are traditional 401k, meaning non-Roth. However, you can do an in-plan conversion prior to moving them over to Schwab, pay the taxes on them, and they become Roth for future withdrawal. Definitely a boon, and something I recommend everyone take advantage of.

Multiple conversions may be done throughout the year, but of course it will have tax implications come April of the following year. The sooner you convert, the less likely you are to incur tax liability.

(Dollars cannot be converted once they are in Schwab, only in the Empower core account)
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