Personal Finance (Not Investing) • Incorrect Roth In plan conversion done by Fidelity

haven't had this problem, but if you didn't authorize the transaction, they should correct it or it should result in a complaint to the SEC (which likely won't be necessary). Just call them Monday and get it sorted out. Either it was a miscommunication or a fat finger. Were you trying to do a $3,000 or a $30,000 conversion rather than a $300,000 conversion?

I wanted them to convert the pretax source on a particular fund. However, they did that and also converted my entire employer match source which is pretax. I definitely did not request the latter. The call log will clearly show that.

What exactly did you say? I could easily see how "convert the pre-tax portion" would be interpreted to include the employer match.

This is what I said. "I have Vanguard 500 fund - which has pre-tax and after-tax source monies. I would like to convert the pre-tax portion for the vanguard 500 fund to roth-in plan". The agent also repeated back the estimated dollar amount that would be converted (about 4k).

The recording is probably your only chance for a correction, but only the agent's repeated estimate would be conclusive to your case, since what you quoted as your actual request was vague with respect to the amount of the IRR. So hopefully the agent's response with an estimated amount and your acknowledgement were also recorded.

Participants should convert all after tax amounts they can and as soon as they can, since those after tax amounts would not be taxable except for their gains. And if you wanted to use a certain amount of the pre tax dollars including gains on the after tax dollars, you could include those dollars as well.

If the plan is willing to correct this large IRR (in plan Roth rollover), the math used should be the same as formerly used for recharacterized conversions, even though an IRR was never allowed to be recharacterized. That means the investment gain or loss since the IRR on the roughly 296k you want returned to the pre tax account should be determined and the adjusted such amount transferred from the Roth 401k account to the pre tax account.

Statistics: Posted by Alan S. — Sat Aug 24, 2024 7:02 pm — Replies 8 — Views 689

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