Leaderboard

There is a requirement for a separate accounting of contribution sources such as pre-tax elective deferrals, Roth elective deferrals, match contributions, employer contributions, rollover contributions and after-tax contributions (to name a few), but there is no requirement to open separate trust accounts or sub-accounts for each source.

The owner should sign a form electing an in-plan conversion of $x and indicate which source is being converted if there are multiple. It's possible your document provider has model forms you can use, ours does. A 1099-R should be issues for the transaction. Ideally I'd like to have it transferred to another sub account at Schwab so it's clear, but you can "lump it one in account" if your on paper tracking is excellent and beyond IRS audit reproach.

sorry, I wish I were more helpful. My clients are all ideal and behave exceptionally well. Always communicate business changes well in advance, never dance around reasonable compenation issues and always do exactly what I tell them to do. Never inadvertently buy life insurance within the plan nor ever invest in limited partnesrships or collectible art. Aggrrhhhhh.