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Mega Backdoor Roth contribution/conversion frequency
Posted by Jeff Jensen on August 2, 2021 at 9:18 amHello,
Mysolo401k helped me set up a non-prototype individual 401k plan with Fidelity. I have 3 sub-accounts for pre-tax, after tax and roth contributions. My question is regarding megabackdoor roth contribution/conversion frequency. How often does the plan allow me to make after tax contributions and how often does the plan allow me to convert the after tax contributions to the roth account? Assuming I will contribute the max $58,000 all in after-tax contributions with intent for subsequent in-plan conversion – logistically it would be easiest to contribute/convert a single lump sum after the fiscal year ends. But if I prefer to make regular contributions throughout the year how often does the plan allow me to do so?
When I make a contribution I call Fidelity to transfer the funds from my bank or brokerage account and fill out the “Solo 401k Annual Contribution Form” for my own records. After the deposit settles, I can immediately call Fidelity and ask them to transfer the funds to the Roth account and fill out the “Voluntary After-Tax to Roth Solo 401k” web form so mysolo401k has the appropriate info to generate an accurate 1099-R. Is this all correct? Am I missing any steps?
Thanks,
Jeff
Jessica Clark replied 2 years, 7 months ago 2 Members · 2 Posts -
1 Reply
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Jeff Jensen
August 2, 2021 at 9:18 amHello,
Mysolo401k helped me set up a non-prototype individual 401k plan with Fidelity. I have 3 sub-accounts for pre-tax, after tax and roth contributions. My question is regarding megabackdoor roth contribution/conversion frequency. How often does the plan allow me to make after tax contributions and how often does the plan allow me to convert the after tax contributions to the roth account? Assuming I will contribute the max $58,000 all in after-tax contributions with intent for subsequent in-plan conversion – logistically it would be easiest to contribute/convert a single lump sum after the fiscal year ends. But if I prefer to make regular contributions throughout the year how often does the plan allow me to do so?
When I make a contribution I call Fidelity to transfer the funds from my bank or brokerage account and fill out the “Solo 401k Annual Contribution Form” for my own records. After the deposit settles, I can immediately call Fidelity and ask them to transfer the funds to the Roth account and fill out the “Voluntary After-Tax to Roth Solo 401k” web form so mysolo401k has the appropriate info to generate an accurate 1099-R. Is this all correct? Am I missing any steps?
Thanks,
Jeff
Jeff Jensen -
Top SubjectSolo 401k Contributions,Rollover Funds into Solo 401kTop ForumsSolo 401k Contributions, Rollover Funds into Solo 401k
Jessica Clark
August 2, 2021 at 2:54 pmTop SubjectSolo 401k Contributions,Rollover Funds into Solo 401kThis confirms there is no limit to the frequency in which you may make Voluntary After-Tax contributions to your Solo 401(k) plan. Subsequently, there is no limit to the number of in-plan After-Tax to Roth conversions you may complete within the plan.
Please reference the following link for step-by-step instructions for processing the conversion at Fidelity: How to Process a Fidelity Investments Conversion of Voluntary After-Tax of Solo 401k Funds to a Roth Solo 401k
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