If your employer allows you to contribute after-tax money into your 401k, and then roll that over into a Roth IRA for the mega backdoor Roth, is it easiest to open up a Roth IRA with your 401k provider to transfer these after tax funds? I have a separate Roth IRA with a different brokerage, but if I want to move the funds there it seems like my 401k provider needs to write a check to the other brokerage every time I want to transfer, and it all sounds like a PITA. If you mega backdoor roth, how do you all do it?
It's a few clicks to transfer to Roth IRA with same provider. You won't have after tax growth, just enroll in the automatic in plan conversion. I still transfer to Roth IRA regularly, but it's not required to save on taxes.
Automatic in-plan conversion. The money automatically gets transferred to a roth 401k within the same employer plan. Don’t know if all plans have this feature.
Mine does, but I want to move the money into a Roth IRA, not roth 401k.
That I don’t know, but I suppose it is a deliberate PITA. Same thing if you need to rollover between different 401k providers - need to call and request a check.