Ok, so I've read about the backdoor Roth stuff and I'm gonna start trying it this year. I've read so much that it gets kinda confusing having not went through the process before. So, just please help me out and make sure I'm not overlooking something.
1.) I called my employer 401k provider, Merrill Lynch, and they said that I am allowed to roll over after-tax monies to a Roth. So, that's the first step, they will allow it while I am still employed with the company I work for. It's my understanding that not all 401k plans allow this unless you separate from the employer?
2.) I max out my 401k and TIRA each year, and then I will start contributing after-tax money. I don't currently have an HSA available to me. So, this is the next logical step, yes?
3.) So, I've already contributed the $5500 IRA to my TIRA at this point. Now, I just roll the after-tax 401k money over into my Roth and it allows me to exceed the maximum amount for the year, because it's a rollover? This seems too simple lol?
4.) I'll be contributing this money throughout the year as a percentage of my income. So, how often do I roll the money over? Because, any interest earned in the 401k while it sits will be taxable, correct?