My 401(k) allowed pre-tax and after tax contributions all these years. I am 80% pretax and 20% after tax in the account. It shows the figures for each category. I can now, if I wish, roll any of that over to a Roth IRA. The question is should I move that 20%. I don’t think I’d be taxed on any of it now, and I think all interest would be left behind to be taxed later.
The benefit to moving it now seems to be that any interest earned going forward would be untaxed when withdrawn. But as I understand it, leaving it would mean I’d be taxed on only 80% of my withdrawals from the 401(k).
I guess moving the post-tax money to the Roth would mean I’d not be able to access it until 59 1/2, while I would the 401(k) after age 55 (one career employer). Not sure if I’m missing other advantages/disadvantages.