Originally Posted by
TurbineDriver
Thanks. Question for you guys who do the mega back door roth (401a to Roth IRA).
When you have the money transferred from brokeragelink every 2 weeks into your ROTH IRA, what do you guys do with the earnings? My understanding is that you can transfer after tax money to the Roth IRA and you can either transfer the earnings to Roth IRA as well (and pay the taxes on them), or transfer earnings into a traditional IRA.
Or is there a way to have money going into brokeragelink go to a money market so there isn’t any earnings before it’s transferred to a ROTH IRA?
It seems like it would be a pain to select a money market because then you would have to buy the funds you want every 2 weeks rather than do the auto invest feature.
The funds transferred go into your “core account position” which is usually a money market fund. Then you select where to invest the money once it shows in that account. So yes it is a 2 step process.