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by Lisbon2022
Wed Jun 22, 2022 4:14 pm
Forum: Personal Investments
Topic: SavingsPlus [CA State employee 457 plan]
Replies: 1
Views: 214

SavingsPlus [CA State employee 457 plan]

As a former State of California emplyee SavingsPlus allows me to have a 457 with Charles Schwab. Recently I asked their help desk if I could move 40K to a Schwab IRA Roth. The contact person said it may be done via a "conversion".
I needed to sell 40K of my Schwab Total Stock, put it in a money market where it moves back to SavingsPlus.
Once this is done it goes back to the same Schwab account but SavingsPlus establishes a "ratio" of pre-tax and post-tax funds.
SavingsPlus sends me a tax form and I pay the taxes on the 40K.

Can someone explain how this is feasible?

Thank you.