I have a 401k from a previous employer which is roughly 4.5 years old and am over 59 ½. When I setup the 401k, I designated it as a Roth 401k. I wanted to start the process of doing a direct rollover to avoid the 20% withholding and have the Roth 401k funds directly deposited into a Roth IRA at another brokerage. When I contacted the 401k Roth brokerage, I was told that my contributions were classified as Roth contributions. However, the prior employer’s matching contributions were classified as pre-tax contributions though deposited into a Roth 401k.
Is there a way to resolve this problem or am I stuck transferring part of the Roth 401k funds to my Roth IRA and the other part, the pre-tax matching contributions, to a traditional IRA? I doubt the employer will help as many are leaving.
I imagine converting the pre-tax matching contributions in the Roth 401k to the Roth IRA will cost a lot of money.
(Hope I didn’t confuse anyone.)
Thanks for any help.
