Thank you retiredjg. Your explanations are so clear and simple!In-plan and in-service are two different things.Following. This is great Q&A.
OP’s questions are well formed. Especially, with mega back door Roth/in plan service conversions every 2 weeks, do folks keep track of this?
In-plan means the aftertax account is rolled into Roth 401k, sometimes immediately. In-service means rolled out to Roth IRA while still working for the employer.
In plan rollovers are tracked by the employer until the money is rolled out to Roth iRA (which could be many years down the line). In-service rollovers to Roth IRA must be tracked by the owner of the Roth IRA.
Not to mention your patience!
I’m relieved to know in-plan is tracked by the employer.
I’m more than challenged just trying to track Roth IRA backdoor contributions/dates etc.
Statistics: Posted by Wannaretireearly — Sun Feb 18, 2024 5:00 pm