Hi all,
Last year I contributed $22,500 to my company 401k. This means I contributed $4,500 after tax dollars. I tried to fill out the form for converting it into a Roth IRA today, and it looks like the $4,500 are listed as "After tax matched" dollars. If I move this money from 401k to Roth IRA I am going to become ineligible for company match (8%) for 3 months.
I called up Empower Retirement and they said the first 8% of every paycheck is matched. Since the $4,500 I put in in December & November was less than 8% it was all matched and I'll be penalized for rolling it over.
Is there something I'm missing/not understanding? Is my best bet to leave any after-tax company matched funds in the 401k (so the first 8% of every month after I hit 19k) and only roll over the after tax portion?
Also, does this mean if I decided to max early (first few months and then not contributing the rest of the year) I'd be missing out on free money??
Thanks in advance