The taxable gain thing isn’t that big of a deal if you roll it over shortly after the $ hits your account. Fidelity will just send you a form to include in your taxes next year.

Mine was something like $44 worth of taxable gains for 2018...rolling over within a few days after each deposit.

Thank you! Very much appreciated.

Question for all you guys out there. So I have officially done the 401a to Roth IRA move twice this year (after both of my last 2 paycheck as I started doing this mid year). The problem is this has been a pain both times. When I call fidelity they always have to “estimate” how much money to transfer. They usually add 10% to my 401a after tax number. Then they tell me if market goes down the transfer won’t go through and they will have to ask for “max available” and resubmit it. Anyways it’s ended up in 3-4 phone calls each time trying to get the amount right and a lot of hassle. I do have my money going into brokerage link.

My question is what am I doing wrong? Is there a better way to do this? I could keep it on the plan side but one rep told me I can’t invest in the money market fund we have available and all the bond funds don’t allow me to transfer money out into the Roth IRA....so basically I can’t pick a fund with low earnings to minimize taxable gains.

I would love to hear from somebody who does this regularly.

Is your Roth IRA with fidelity? Maybe the issue is it’s going to an IRA elsewhere?

I’ve never heard of that 10% estimate nor ever spent more than 5 minutes on the phone - just once per transaction.

Yes it’s with fidelity.

I've been doing this for over a year and never once experienced what you are saying.


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No idea what’s causing your issue then. The only thing you’re doing different from me is the Brokerage Link setup, so maybe there’s something to that.

As far as the “can’t invest in the bond fund” that definitely isn’t correct. All of my contributions (pre-tax, 401a and company) are spread across 5 index funds (the bond index fund being one of them).

When I call to initiate the 401a->Roth IRA transaction Fidelity sells some of each of those funds (including the bond fund), usually with minimal gain if I do it shortly after pay day. Within a few days it settles and I have an equivalent amount in Fidelity Cash Reserves in my Roth IRA, which I then use to buy whatever investment I want. I’m boring and use the total market index fund - FSKAX.

It sounds like you’re getting a rep on the phone that isn’t familiar with the process. Ask to speak to someone else, specifically familiar with the DPSP, and more specifically our “in service withdrawal” option.

You can pull up the Summary Plan Description on the Fidelity site or the DALPA site under R&I if you need to quote them chapter and verse. Something isn’t right in your experience. Hopefully you can get the friction removed. It should be painless after the initial time or two.

If all that fails call the ALPA R&I committee and they should be able to get you going.

Is money initially going into your brokerage link or just the plan side? Just had a long conversation with a rep. Sounds like it will be infinitely easier to just have the money initially go to the plan side.

I did the transfer today. None of those aforementioned problems.

I don’t have brokerage link setup, so all money just goes into the regular plan. That must be where the hang up is