My employer recently changed 401k custodians to Fidelity and are offering after-tax contributions that can later be rolled over to roth IRA (essentially the mega-backdoor roth contribution). The problem is that I would like to transact the conversion to roth IRA monthly (right after each after-tax contribution), but it's fairly cumbersome (multiple phone calls) to be doing every month. They do offer automatic conversion to roth (within the 401k) on the after-tax contributions as well as after-tax withdaws after the conversion. My plan would be to set up the auto-conversion to roth and then periodically roll over those after-tax contributions (that are now roth) to my roth IRA. I'm just unsure if the "backdoor" can be used if the conversion is coming from after-tax funds that have not yet been converted to roth. Any pitfalls for doing the mega-backdoor with after-tax funds that have first been converted to roth in the 401k?
