If a 401K conversion to ROTH is planned, don't wait until close to year end. I have requested a partial after-tax 401K contribution conversion to 401K ROTH and is in process. It is taking several weeks and looks like it might take at least month. The claim is that it takes time to calculate the taxable amount because pro-rated earnings are required to be included in the conversion. I'm still not certain if the conversion will be for the amount specified or the amount specified plus associated earnings. Either way is okay. The plan allows two conversions per calendar year. If it is the first, I will submit a second conversion request. Far different than doing a partial TIRA conversion which was done online and completed the next business day. It was an alternative when I waited until December and was told a 401K conversion couldn't be completed before end of year.
I don’t know if this applies to your situation but, have you considered transferring your 401(k) balances to a traditional IRA (I think they call this a rollover). Seems like it could alleviate that headache. I think some employers even allow for in-service rollovers...depends on your plan. Once I retire about the first thing I will do is rollover my 401(k) to a traditional IRA...I hate the limited investment options in my employer’s plan. And I hate the monthly fee even more!
No, because I want to do the after-tax conversion before rolling it over.
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