Have a Q on the Mega Backdoor Roth:

I contributed 10% of after tax pay to a normal 401k and called Fidelity to rollover the after tax amount to Roth IRA. The issue though is that the after tax amount gets invested in my 401k investment election. So by the time I called Fidelity to process the rollover, there was a $12 gain on after tax amount. Fidelity transferred the original after tax amount to my Roth and transferred $12 gain to traditional IRA

Is that correct? Any tax implications to this?

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Yes you will pay taxes on the $12, should be minimal

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Yes, tax implications on the gains. But you don't need to worry about something as small as $12. Just make sure you report it correctly.

If you can automate the process, then you shouldn't have to worry about the gains. However that isn't always an option, so you may need to call up after each pay period contribution to limit gains but weigh your LOE on this. Some people just do it every quarter. And make sure there aren't any transactional fees associated with the call into to do the conversion.

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If money starts building up in your Traditional IRA (even $100 or so a year), does that impact your ability to do a backdoor Roth in the future?

Is it a bad idea to just leave it with PwC?

If you don't convert the money to a Roth account, the gains continue to grow and you owe taxes on that. Once you convert it, it grows tax free. Why pay taxes on thousands of dollars come retirement, when you can pay taxes on a few bucks now?

IMO it's less of a hassle to leave it in a 401k Roth, but you must have that option. Not all companies offer that option. At the end of the day though, a Roth IRA gives you more freedom over your investments.

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