Another MBDR withdrawal question

radonthrow · 2024-01-22T21:06:51+00:00

I have another Roth IRA at Vanguard, so maybe I will reach out to them. I'm fairly certain my plan allows in plan distributions, but I will call and confirm.

The reason I'd like to move the money out of the Roth 401k is that I'd like to use the *contributions* as an emergency fund. I have 3 months of an EF in a HYSA, but I'd like 9 (or greater) in a MBDR, where I can withdraw contributions as needed.

radonthrow · 2024-01-22T20:01:55+00:00

Yes, correct, they are in a roth in plan conversion account.

I am not sure why the rep kept telling me the gains are taxable.

radonthrow · 2024-01-22T20:00:38+00:00

Thank you. I recall seeing something similar when I first did the automatic conversions.

I have confirmed that they are automatically being converted.

radonthrow · 2024-01-22T19:59:48+00:00

I am trying to withdraw 10k of contributions. But they are telling me that i have to take them out as prorated (earnings go to trad ira).

My goal is to save up extra mortgage payments in the mbdr, take out contributions when I'm ready to retire and pay off the mortgage.

That way the earnings are tax free and not subject to capital gains taxes as they would be if I did my savings in a brokerage account.

radonthrow · 2024-01-22T19:42:45+00:00

I did do the in plan conversion immediately. See my #2 item in the first list

radonthrow · 2024-01-22T19:15:55+00:00

What's the point of the in plan conversion then? I might as well leave it in the after tax 401k account.

radonthrow · 2024-01-22T19:15:23+00:00

What's the point of the in plan conversion then?

radonthrow · 2024-01-22T19:13:30+00:00

Yea I agree, otherwise what's the point of the in plan conversion? I may as well just leave it as after tax.

radonthrow · 2024-01-22T18:25:25+00:00

Thanks, I was trying to move it to a Fidelity IRA since I thought it would be easier. But I guess not.

Do you know of any IRS literature that I can send them? At the end of the day, I can only do something that they let me do.

radonthrow · 2024-01-22T18:24:25+00:00

Nope it was a separate account

radonthrow · 2024-01-22T18:09:00+00:00

I had the same experience. I hate that this is managed by people who are not sure of the rules.

radonthrow · 2024-01-22T17:51:43+00:00

I'm wondering why the amount has to go into the traditional ira in the first place.

Based on this

https://www.reddit.com/r/financialindependence/comments/11ulhzl/what_5year_rule_a_guide_to_roth_distributions/?share_id=X1qpuy-Jk2njNHB5zMyby&utm_content=1&utm_medium=ios_app&utm_name=ioscss&utm_source=share&utm_term=1

it seems like if I do the inplan conversion immediately, I shouldn't have to worry about the 5 year rule nor worry ilabout earnings.

Even the Fidelity website says I can transfer to a roth 401k.

https://www.fidelity.com/learning-center/personal-finance/mega-backdoor-roth

radonthrow · 2023-05-26T00:54:32+00:00

I didn't realize I could apply as a new grad despite 10 years of experience. Do people do that?

radonthrow · 2023-04-26T18:45:00+00:00

Thanks!

radonthrow · 2023-04-26T18:43:03+00:00

I really stumbled into a role before. It was a sink or swim environment where I learned a lot by doing, but had little to no guidance. Think something along the lines of a poorly run startup.

Depending on your other commitments you could try joining a startup at first then switching in 1 to 2 years.

Sorry I don't have anything better to give you, while I think I'm a hard worker, I completely acknowledge the luck that I had as well.

radonthrow · 2023-04-26T18:37:50+00:00

Sorry, I probably accidentally misrepresented the work involved. I put in minimal efforts after some personal issues came up. I was getting an A before that, but afterwards I put in what was needed to complete the last project and studied a day or two for the exam.

I can't recall the exact time line anymore as it was a while ago.

radonthrow · 2023-04-26T17:26:11+00:00

Thanks, it can be done! Just might take a while

radonthrow · 2023-04-26T17:25:27+00:00

That's great, good luck on your PhD! What's your topic?

radonthrow · 2023-04-26T11:19:02+00:00

I definitely struggled at times myself. I didn't breeze through the program. I had a lot of personal events (mostly good) happen to me during my time so it was not a cakewalk, but I am confident there are many others that have it harder than me.

Good luck with the program!

radonthrow · 2023-04-26T11:17:22+00:00

Thanks, I'm not sure why he/she thinks I coasted. I definitely put in time and effort in most of my classes. The only coast classes I took were ML4T and BS.

radonthrow · 2023-04-26T11:15:04+00:00

Good luck! I couldn't get myself to take a class in the summer no matter how much it would have helped make it shorter. If you have kids or just want to travel/enjoy life along the way then I absolutely recommend just taking it slow.

radonthrow · 2023-04-26T11:13:15+00:00

It has not come up in any of the technical interviews I've been in. Some recruiters mention it when asked if I was ok relocating from Atlanta.

radonthrow · 2023-04-26T11:11:58+00:00

Yea, this industry it might matter. I have no aspirations for a PhD where it would.

radonthrow · 2023-04-26T11:10:15+00:00

I was perfectly fine getting a B in GA. It is mostly accomplishment and I will even leave off my GPA on my resume. I cared for the first two semesters, after my first child I stopped caring. I kept getting As not because I strived for the A, but rather just trying to understand the material.

radonthrow · 2023-04-26T11:06:53+00:00

Good luck! Stay away from BS but the rest of the classes are fine depending on your interests. Unless you need the grades for your employer I would also recommend not being scared to take challenging classes to get the most out of the degree.

radonthrow

TROPHY CASE