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My company offers after-tax 401k, also with Fidelity. I called and spoke with two different people, neither had a clue about after-tax, one was sure I meant a Roth 🤦♀️ They both put me on hold to check with someone, came back and said yes (clearly it was a learning moment for both of them). I tell you this because you may land on someone like I did, but they won't punt and do come around (albeit wasting some of your time).
So, be prepared. I don't have a specific resource to recommend, I did a ton of Googling. My advice, see if your plan allows for automatic in-plan conversions (after-tax to Roth) so that you never have to pay taxes on it again. Set that up first so that it immediately coverts when you start contributing.
Also, probably goes without saying, but you want to be sure you max out your regular 401k before adding to after-tax. Some plans let you do both concurrently, and some plans only allow after-tax after you max out the regular 401k. If Fidelity can't answer that, your HR can.
One last note, because you also have Fidelity, it does show up on the same dashboard, same 401k account, just tagged as after-tax.
Does your new job offer:
- Traditional 401k
- Roth 401k
- After Tax 401k
Any or all are offered by some companies, like ACN. Traditional and Roth are subject to the 19.5k IRS limit and may get a company match. After tax is separate, with a company-set limit.
Rollover: you don’t have to rollover, but can. These funds land in a traditional or Roth 401k as your company offers. If your old is Roth and new is not, you may need to do a Roth IRA.
The after tax is not very straightforward with fidelity. You could roll it anywhere, though. For fidelity, set up a trad IRA and core position (e.g., SPAXX), then set up that account routing with your company after tax 401k in service withdrawl account setup page, so it knows where to route the funds. FYI that fidelity uses a 3rd party bank, and may show funny on the routing.
Pull your funds out of toe work 401k to your trad IRA spaxx. Let funds settle. Open a Roth (if you don’t have one), then “convert” the trad funds to Roth under the transfer option. Funds land in your Roth core account. Then, invest those funds from your core position under Roth to your target fund. Don’t forget to check your settings in your Roth account to ensure gains are deposited to the your target fund as a repurchase, and not deposited as core cash.
What’s your new company?