Hey Andre! I had contributed $6500 to my Traditional IRA and converted it into ROTH IRA. I gained some interested in my Traditional IRA (<$2) during the end of the month. This automatically got covered to ROTH IRA. Is this considered excess contribution ? Is there anything I'll have to do to withdraw excess ?
I thought you could exchange your mutual funds to those that are offered by your 401K plan and then get them transferred from Rollover IRA to the 401K without having to liquidate them. Wouldn't save any time but at least you will continue to be in the market just incase there are some wild swings while you were cashed out.
BTW, I noticed you were buying FPADX instead of your fav FZILX. Are you further diversifying your Intl allocation?
Ahh, the fidelity rep told me it needed to be in cash. It would be more ideal if you could just transfer the funds in-kind if you matched the funds in your 401k.
Re: FPDAX, good eye. This what I previously used prior to FZILX existing. All that Roth is currently in FPDAX so to keep it simple I just went with that. Also has the added benefit of being able to keep automatic reinvestment of dividends without worrying about any tax loss harvesting in my taxable account (but I wasn't optimizing for this).
Hi Andre! I didn’t know this and hadn’t moved my existing rollover IRA into my employer’s 401k account yet
but already opened up a traditional IRA and deposited money in there already
Is this a problem? Would you suggest stopping here before converting the trad to a Roth IRA?
Hey Andre! I had contributed $6500 to my Traditional IRA and converted it into ROTH IRA. I gained some interested in my Traditional IRA (<$2) during the end of the month. This automatically got covered to ROTH IRA. Is this considered excess contribution ? Is there anything I'll have to do to withdraw excess ?
I’m actually in a similar boat for the same reason. I rolled the remaining $0.80 in my case into my Roth.
It isn’t an excess contribution since it is part of the conversion. I believe there will be tax owed on that amount.
I’ll let you know if I run into anything when I do my taxes in the next month.
I thought you could exchange your mutual funds to those that are offered by your 401K plan and then get them transferred from Rollover IRA to the 401K without having to liquidate them. Wouldn't save any time but at least you will continue to be in the market just incase there are some wild swings while you were cashed out.
BTW, I noticed you were buying FPADX instead of your fav FZILX. Are you further diversifying your Intl allocation?
Ahh, the fidelity rep told me it needed to be in cash. It would be more ideal if you could just transfer the funds in-kind if you matched the funds in your 401k.
Re: FPDAX, good eye. This what I previously used prior to FZILX existing. All that Roth is currently in FPDAX so to keep it simple I just went with that. Also has the added benefit of being able to keep automatic reinvestment of dividends without worrying about any tax loss harvesting in my taxable account (but I wasn't optimizing for this).