Originally Posted by Davaldez21
Essentially your non deductible funds are watered down and become part of 'the pool' unless you convert the whole thing? (Unless you utilize a separate T401k account) several users mentioned
This is a very good way of thinking about it. Everything is mixed together in a uniform solution and the only way to benefit completely from the non-deductible basis is to convert the whole thing.............unless ,as you say, you utilize the T401K , in which case the deductible funds magically float on top of the non-deductible basis and you can skim them off to the 401K, leaving the
non-deductible basis behind to be converted separately.