Fidelity deposit and conversion5 Replies
Top ForumsMega Backdoor Roth Solo 401kJuly 29, 2021 at 9:59 pm
1. Should I make a deposit directly to the “After-Tax” account from my bank account vs open Fidelity regular brokerage account and deposit from there? (I believe if deposit from my bank account then it will take few days for the balance to settle. If the “After-Tax” contribution comes from a brokerage account, it might be the same day and I can start the Roth Conversion process.)
2. I guess I need to open a “Roth IRA” account first before the conversion? Just to make sure about each step.
Top ForumsMega Backdoor Roth Solo 401k, Solo 401k Bank AccountJuly 30, 2021 at 7:10 am@ShahidShabbir
1. The contribution can come from your solo bank or solo brokerage account provided that it is within the IRS contribution limits, and by the IRS deadline.
2. If you haven’t already, you will need to open a Roth IRA before you execute your conversion as this will be essential to the conversion process. The following link gives you step-by-step instructions on how to process the After-tax to Roth IRA at Fidelity conversion: https://www.mysolo401k.net/solo-401k/how-to-process-a-fidelity-investments-conversion-of-voluntary-after-tax-solo-401k-funds-non-prototype-account-to-a-fidelity-roth-ira/
3. Once you process the conversion to the Roth IRA, please provide us with the information needed to prepare the required 1099-R to report the conversion:
Voluntary After-Tax to Roth IRA Conversion Form: https://www.mysolo401k.net/after-tax-to-roth-solo-401k-in-plan-conversion-form/
As always we are here to answer any questions you may have along the way.
Top ForumsMega Backdoor Roth Solo 401kJuly 31, 2021 at 7:46 am
Question about conversion and left over money. for example.
I contributed $5K to “After-Tax” 401K, once the balance settled then I filled up the fidelity “one time withdrawal” to convert to Roth IRA and upload it. Fidelity will make that transaction eventually. In between there might be some cents or $1 gain due to return from default money market fund. What happens with that changed? leave it in After Tax account and add into next time conversion?
Top ForumsPrivate: My Community Webinars, Mega Backdoor Roth Solo 401kAugust 2, 2021 at 5:33 am@ShahidShabbir
All of the funds are transferred to the Roth IRA.
Please list the amount of gains in the “Gains Converted to ROTH IRA” on the online form linked above so that this amount can be properly reported on the Form 1099-R.
Top ForumsMega Backdoor Roth Solo 401kAugust 7, 2021 at 2:06 pm
When filling out “One-Time Withdrawal” forum to roll over from “After-Tax 401K” to “Roth IRA”, why not check the box with “ALL core cash and Fidelity money market funds in your account”
Because I want to roll over everything without leaving any money behind.
If I check box with “ONLY the following amount of cash in your account” so gains will be left behind.
Top ForumsPrivate: My Community Webinars, Mega Backdoor Roth Solo 401kAugust 8, 2021 at 5:05 pm
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