Personal Investments • Rolling over the after-tax portion of an old 401k

Hi,

I have an old Fidelity 401k (previous employer) that had a pre-tax portion and an after-tax portion. The majority of the money was in pre-tax, and I was able to successfully roll that over to my current 401k (also Fidelity).

However the old 401k also has a small after-tax portion that Fidelity was not able to rollover because my current 401k plan does not allow that.

• Total after-tax amount = $6,400
• Basis = $3,400
• Growth = $3,000

I want to move this amount to my Vanguard Roth IRA. I called Fidelity and the rep said that they will send me two checks (one for the basis and one for the growth). He said I can then send those to Vanguard, and they will deposit my basis check into my Roth IRA, and the growth check into my Traditional IRA, and I can later convert the Traditional IRA into Roth, and pay taxes on it during tax filing.

Does this seem like the right way to go about this? Please also note that I do Backdoor Roth every year so don't want to lose that option.

Also note that the old 401k account has an alert for me on the Fidelity website: "In accordance with the provisions of your retirement savings plan, you are scheduled to either receive a cash distribution or have your entire vested account balance rolled over to an Individual Retirement Account on 11/15/2024."

Statistics: Posted by lifebeckonss — Fri Sep 20, 2024 2:19 pm — Replies 0 — Views 41

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