Originally Posted by
Mach10
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)
From a BlueDude post on the previous page:
"You can't make company contributions Roth directly as yet but you can do it indirectly already. Just make an in-Plan Roth conversion of company contributions.
You'll have to pay taxes on everything you convert, from an outside source (you can't use Plan funds to pay the taxes, and it would be counterproductive if you could). This is no different than making company contributions Roth, as you'd be liable for taxes on those also."
His post sounds as if you'd pay taxes on the entire conversion, not just the gain. Which makes sense from a tax perspective. Are you sure you're doing it correctly?