I'm fairly new to investing, and I've decided to take more control of my retirement accounts. I recently opened a Schwab PCRA ( self-directed brokerage option) for my 457 account with my employer. All withdrawals are processed through my 457 account, so before I place trade orders in the PCRA, I have to transfer funds from my 457 to the PCRA where the money is automatically invested in a Schwab Money Market Fund (sweep account).
Here's the thing, I have both Pre-tax and Roth contributions in my 457. Once my money is invested in the PCRA, I won't be able to distinguish between pre-tax and Roth money types. The Schwab representative said that the brokerage firm for the employer account (457) would keep track of the amount of Roth and Pre-tax funds that I transfered to the PCRA, so later on when I take distributions, they will determine how much was Roth and how much was Pre-tax based off of the original ratio of contributions that were transferred.
Does this seem right? Is it a bad idea to mix pre-tax and Roth funds in a PCRA account if I can't tell what they're invested in? My plan is to use the PCRA to invest in index funds like SWSTX and maybe some REITS index funds. If I mix pre-tax and Roth funds, should I stick to one index fund to keep things simple? Does anyone have any advice?