Fidelity mixing after tax and pretax 401k

Sep 4, 2020 16 Comments

I am making both after tax (with roth rollover) and pretax contributions to my fidelity 401k. I see a single balance for all my contributions. How does it separate tax free and taxed capital gains in future? Even dividends are being reinvested in the combined account. Is there a way to see what part of my balance is growing tax free and what part is taxed?

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TOP 16 Comments
  • Fidelity, vanguard both did the same for me. The best is to rollover all of your after tax contribution to roth ira as soon as it hits your 401k. This is called mega backdoor roth. And roth IRA is better than roth 401k. Easier withdrawal and separate account than your traditional pretax 401k. So you get to manage that on your own.
    Sep 4, 2020 6
    • Ancestry
      itsburning

      Go to company page Ancestry

      itsburning
      @Enough1 I cannot talk for fidelity as I didn’t dig deep. I had principal before with a different employer. The initial view shows one balance, I had to dig deep into their website to check for pre tax and post tax investments. I am sure fidelity should have this.
      I would recommend calling fidelity and check with them, they will be glad to assist.
      Sep 4, 2020
    • VT-ARC
      AwXg78

      VT-ARC

      AwXg78
      I was trying to set this up today, do you have to send a check? Or can it be done through wire transfer? I don’t work at Microsoft tho
      Sep 4, 2020
  • There is a page in netbenefit where you can see the break down. You have to click under detail button right below pie chart by Sources. Ive figured this out yesterday.
    Sep 4, 2020 5
    • Thanks I called and got this confirmed as well, only disappointed that we can't transfer Roth 401k to Roth IRA while still being employed
      Sep 8, 2021
    • @ethis53 not sure if you're referring to the whole Roth 401k or just the after-tax 401k that automatically gets converted to Roth but if the latter, I recall that we can move to Roth IRA. It's been a while since I spoke to rep, but iirc you have to call every paycheck to initiate transfer (can't just set it up)

      This thread seems to be in alignment with feasibility too:

      Fidelity auto rollover After-tax 401k to Roth IRA (Investments & Money)
      https://us.teamblind.com/s/0tHA13a3
      Sep 12, 2021
  • Go to summary from quick actions and scroll down to the sources pie chart. Click show details. Gains will be Balance - Net Contributions
    Sep 9, 2020 0
  • I have been wondering the same thing for a while now but haven't had a chance to look into it. Following this thread
    Sep 4, 2020 0
  • Microsoft / Eng
    imposterxd

    Go to company page Microsoft Eng

    PRE
    Microsoft
    imposterxd
    I've been wondering this as well. Fidelity's UI/UX is kinda shit
    Sep 4, 2020 0