Did this noob get After Tax and Roth conversion right?
Assume using Fidelity at Msft.
1) I contribute to "after tax" 401k bucket.
2) I select automatic conversion quarterly to Roth 401k.
3) At the end of quarter I call Fidelity and ask them to convert the Roth 401k funds to my Roth IRA, assuming I opened an account in the meantime. (Don't have it currently). This conversion makes the earnings also tax free.
4) Once the funds are in my Roth IRA, I can withdraw the "principal" tax free and penalty free anytime. Earnings can be withdrawn tax free and penalty free only after 59, if account has been open for 5 years.
5) I should keep documents of the contribution amounts/times and transfers to Roth IRAs times to only withdraw principals.
Anything I'm missing?