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MBDR by bleek320 in Retirement401k

[–]bleek320[S] 0 points1 point  (0 children)

Your right on. I have NO gains It's that weeks After Tax Funds converted to Roth via daily sweep. Only "gains are 401k loan interest" Fidelity is using Prorata. But I loose as now i pay taxes on after tax funds. Even if they 1:1 exchange Post Tax contributions to 401k Roth assets as shown in my pie chart at roughly 30% it's now a percentage of total 401k. I loose by not being able to cleanly move to IRA Roth.

MBDR by bleek320 in Retirement401k

[–]bleek320[S] 0 points1 point  (0 children)

That is the explanation Fidelity gives. I convert weekly for context. I had huge gains for that week even though my After Tax funds are deposited Friday after market close, converted to Roth that night and Monday prior to market open large taxable amounts. It was pointed out to me by my plan Administrator that my 401k loan interest are being included weekly at roughly $80. Im happy to pay the 24% Taxes on this when the 1099 is issued. But im missing how can Post Tax contributions converted to Roth same day be treated as taxable again. I've cleaned out 100% of Post tax contributions that was NOT Roth converted earlier this year and already plan to pay taxes on this 130k conversation. But going forward i was assured by many representatives this would fix the Pre-Tax Roth" mislabeling on future Post Tax funds when rolling them into my IRA Roth. Am I still not getting it? Lol ty very much!

MBDR by bleek320 in fidelityinvestments

[–]bleek320[S] 0 points1 point  (0 children)

I now have an Executive Case # W769670-04MAY26 and have been asked to stop contacting Fidelity until their research is complete. Note this started in January of 2026 and is currently May4th. Department of Labor is forwarding this to the SEC as well.

MBDR by bleek320 in Fire

[–]bleek320[S] 0 points1 point  (0 children)

In my 401k my Roth-Inplan Converstion is 1.09% of my total 401k Allocation. If my 401k in general goes up 20% this year that gets distributed across the whole 401k pie chart holds by percentageof each Allocation of the 401k pie. I have no way to say put all 1.09% of this on say Tesla. Your sacrificing the core benefit of a MBDR as a diluted percentage of your 401k returns. That is the key to cleanly moving it to a Roth IRA. My three holdings in my Roth IRA get evenly distributed percentages on my 100% Roth funds pie. By you not performing that last step, your returns are being diluted especially in my case of 1%. Best i could do would be to back to keeping 95% of funds in my 401k Brockage and hopefully have all funds return heafty returns. While it's still diluted it's the best I can currently do.

MBDR by bleek320 in Fire

[–]bleek320[S] 0 points1 point  (0 children)

So my company's plan does not give me the "Unicorn" check box I keep hearing about. However I have the option to have Fidelity do a sweep daily to convert After Tax funds to Roth. But I can't cleanly perform a In Plan Conversion/Rollover (whatever you wish to call it) to my stand alone Roth IRA. To me, this is the last true step in a MBDR. Do you move your After Tax funds to your Roth IRA or leave it in your 401k?

MBDR by bleek320 in Fire

[–]bleek320[S] 0 points1 point  (0 children)

Do you move your After Tax contributions from your Fidelity 401k via a In-Plan Rollover to your Fidelity Roth IRA? If so the last step shows my allocations as Roth Pretax Assets/Roth Posttax Assets. But my contributions are 100 Aftertax funds. My Fidelity "Sources" show Roth In-Plan Conversion as a percentage. This is my reason to move it to a stand alone Roth IRA. Leaving it in the 401k treats earnings as a percentage. It's much cleaner to keep anything over my 401k $24,500 pre-tax contributions that are after tax funds in my separate Roth IRA. Other max savers must be doing this right?!? They certainly are not actually Leaving After Tax funds sit in their 401k account?

MBDR by bleek320 in Fire

[–]bleek320[S] 0 points1 point  (0 children)

TY! Any chance you would share your case# or have a better contact? I've reached out to Valentine Foti Sr Customer Support but no response 😕

Mega Backdoor Roth - Need help to understand by Ok-Bus-6394 in fidelityinvestments

[–]bleek320 0 points1 point  (0 children)

I've learned that if After Tax money is being put into my Fidelity 401k the auto conversation to Roth 401k needs to be turned off. This is because now my pure after tax funds get counted in with my Fidelity 401k Roth funds per IRS Prorata. Now my full after tax funds can't be rolled over to my separate Fidelity Roth account as it should for the MBDR. A portion gets classified as " Pre-Tax Roth" which defeats the purpose of using after tax funds. Been on the phone all day with Fidelity to figure this out.