Anyone familiar with After-Tax 401k contributions (not Roth)? My new company allows for after-tax contributions, but they can only be rolled to a Roth IRA following year end (continued)

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Does your plan allow for in-plan conversions to Roth funds? It seems strange that they would allow in plan rollovers to an IRA (most plans in my experience don't allow rollover to IRA until you've left the company). The megabackdoor conversion is probably your best option. My plan converts it to Roth funds that sit within my plan (separate from Roth 401k contributions against the $19k 2019 limit). I have it set up to be automatically converted after each paycheck contribution, which is key for the taxes. If your plan only allows you to Rollover to an IRA in the next year, I'm not sure how that works. But if it is similar to the in plan conversion, maybe you want to lump sum your contribution and then do the rollover shortly thereafter in the new year?

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OP: In plan conversion: this remains within a 401k plan structure, and converts from "after tax" sub-account to "Roth conversion" sub account, but remaining in your 401k plan. The in plan rollover: money leaves your 401k plan, goes to your individual Roth IRA.

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So I can contribute during 2020 but can’t roll over the contributions to a Roth IRA until January 2021. I’m wondering if this will create an issue since it is my understanding that the earnings on the after tax contributions are treated as traditional 401k contributions, so when it comes time to rollover the after-tax contributions to a Roth IRA, I’ll have to roll the earnings to a traditional IRA, which could be troublesome down the line if I wanted to do backdoor Roth IRA contributions due to pro rata rules, right? Wondering if I’m missing something or if there’s a workaround.

@BCG1 - does the full amount get rolled over into your Roth IRA and you pay taxes based on a 1099 from the company on the pre-tax amount that was included in your rollover? Or do you need to track what the pretax amount was the report on your taxes?

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