Hello,
My wife's new fellowship employer allows for a partial mega backdoor Roth. The plan allows for an additional 10% of her salary to be contributed to her 401k after tax, and allows Roth in plan conversions. Her plan is with Fidelity.
This is the first time I've had an opportunity to take advantage of one of these plans and just realized that the process of roth conversion is not straightforward. It involves calling fidelity and takes some time to process. The contributions can only come out of her paycheck throughout the year.
So my question is -- folks with the mega backdoor option, how often do you actually do the Roth conversion? Annually? That timeframe feels like it risks having significant gains to convert. Ideally it would happen right after contribution but I can't imagine calling fidelity every two weeks to convert the newest contribution. How do people do this, practically speaking?
My wife's new fellowship employer allows for a partial mega backdoor Roth. The plan allows for an additional 10% of her salary to be contributed to her 401k after tax, and allows Roth in plan conversions. Her plan is with Fidelity.
This is the first time I've had an opportunity to take advantage of one of these plans and just realized that the process of roth conversion is not straightforward. It involves calling fidelity and takes some time to process. The contributions can only come out of her paycheck throughout the year.
So my question is -- folks with the mega backdoor option, how often do you actually do the Roth conversion? Annually? That timeframe feels like it risks having significant gains to convert. Ideally it would happen right after contribution but I can't imagine calling fidelity every two weeks to convert the newest contribution. How do people do this, practically speaking?
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