Converting Roth 401(k) to Roth IRA?
01-21-2020, 09:02 AM
#51
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Has anyone set up the automatic mega back door conversion with Fidelity? How is it working out? Also, I'm assuming the expense ratios of the funds are different? I only do the index funds which have really low expense ratios in our Delta plan. Is the Fidelity IRA similar?
01-21-2020, 09:06 AM
#52
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Originally Posted by m3113n1a1
Has anyone set up the automatic mega back door conversion with Fidelity? How is it working out? Also, I'm assuming the expense ratios of the funds are different? I only do the index funds which have really low expense ratios in our Delta plan. Is the Fidelity IRA similar?
01-21-2020, 04:39 PM
#57
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Joined APC: Jul 2006
Posts: 5,555
Originally Posted by DWC CAP10 USAF
For those that are doing the mega back door to Roth IRA, if you already had a Roth IRA outside of Fidelity, I assume you rolled the original Roth IRA into the Fidelity Roth IRA?
01-21-2020, 06:27 PM
#58
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Originally Posted by crewdawg
I did not. I kept my Roth IRA with Vanguard and I've continued to contribute the yearly max to that via the backdoor Roth IRA. I open the fidelity Roth IRA to do my 401a rollovers.
Thanks!
01-21-2020, 07:18 PM
#59
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Joined APC: Apr 2008
Position: DAL FO
Posts: 2,143
Originally Posted by DWC CAP10 USAF
So you do both...for some reason I was under the impression you could only do either the in plan conversion or the mega.
Thanks!
Thanks!
They are 2 separate things. The confusion may be coming from the common use of the term “backdoor”.
1. Backdoor Roth IRA: Google “Backdoor Roth IRA White Coat Investor”
2. Mega Backdoor Roth: Google “Mega Backdoor Roth White Coat Investor” (note the absence of IRA in this term)
It’s important that you read up on this to understand the difference between these two maneuvers before attempting either one. They are not related to each other at all, but each has its own set of considerations.
As was mentioned a few posts back, there is ALOT of questionable info being shared in this thread. Make sure you know what you’re doing or get some professional advice if necessary.
01-21-2020, 07:27 PM
#60
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Joined APC: Apr 2016
Position: Looking left
Posts: 3,251
Originally Posted by LeineLodge
The short answer is yes you may do both (I do), either or neither depending on your circumstances, priorities and goals.
They are 2 separate things. The confusion may be coming from the common use of the term “backdoor”.
1. Backdoor Roth IRA: Google “Backdoor Roth IRA White Coat Investor”
2. Mega Backdoor Roth: Google “Mega Backdoor Roth White Coat Investor” (note the absence of IRA in this term)
It’s important that you read up on this to understand the difference between these two maneuvers before attempting either one. They are not related to each other at all, but each has its own set of considerations.
As was mentioned a few posts back, there is ALOT of questionable info being shared in this thread. Make sure you know what you’re doing or get some professional advice if necessary.
They are 2 separate things. The confusion may be coming from the common use of the term “backdoor”.
1. Backdoor Roth IRA: Google “Backdoor Roth IRA White Coat Investor”
2. Mega Backdoor Roth: Google “Mega Backdoor Roth White Coat Investor” (note the absence of IRA in this term)
It’s important that you read up on this to understand the difference between these two maneuvers before attempting either one. They are not related to each other at all, but each has its own set of considerations.
As was mentioned a few posts back, there is ALOT of questionable info being shared in this thread. Make sure you know what you’re doing or get some professional advice if necessary.
I already have an appointment set up with my finance guy to chat...I just didn’t want to walk into the meeting with zero clue about my options.
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