Am i wrong or is Fidelity?

[droh82]

My company has a 401k with Fidelity
I max my pretax 401k amounts and then make AFTER-TAX (not Roth) contributions throughout the year.
End of the year - I roll over AFTER-TAX "contributions" to my personal Roth IRA with fidelity and roll over AFTER-TAX "earnings" to my personal Traditional IRA (also with fidelity)

I was under the assumption that after 5 years I can withdraw those AFTER-TAX "contributions" from my Roth IRA tax-fee and penalty-free.
Fidelity rep says I have to wait until I'm 59 and 1/2 to withdraw tax-fee and penalty-free.

Who is correct?

[nalor511]

A Roth conversion does not become a Roth contribution, ever. Rules are different for those two categories. You don't have any contributions. Fidelity is correct https://www.investopedia.com/roth-ira-withdrawal-rules-4769951

[kenner]

A Roth conversion does not become a Roth contribution, ever. Rules are different for those two categories. You don't have any contributions. Fidelity is correct https://www.investopedia.com/roth-ira-withdrawal-rules-4769951

Nope--conversions and contributions are different, but that doesn't mean Fidelity is right.  The entire process is literally part of the sticky at the top of this (Investor Alley) subheading:
https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/

[droh82]

I have read and referenced that article many times throughout the years but I only recently got access to after-tax provisions through my work 401k, so in re-visiting that article, I guess my main concern is that the article pertains mainly to pretax amounts and I am worried that the "after-tax" contributions I made to the 401k work differently when converted over to Roth.

Would like a definitive answer or maybe who has actually withdrew money under the same circumstances I am suggesting.

Maybe I just over thinking it. Fidelity got me second guessing myself.

[trc4897]

According to Bogleheads, you are correct. Check out the withdrawals section of the link below. Contributions and conversions can be withdrawn at any time

https://www.bogleheads.org/wiki/Mega-backdoor_Roth

[ixtap]

This is a conversion, and conversions become penalty free after five years. And any penalty applies only to the portion that was taxed at the time of conversion. Since you do not have a taxed portion, you do not have a waiting period (it may be necessary for the Roth IRA itself to be five years old, but then each conversion becomes available to you).

Contributions can be withdrawn tax and penalty free at any time.

According to the IRS, you remove first any contributions you have made ever. Then you remove the conversions one by one, oldest first (and if you did pay tax at conversion, the taxed portion comes out before the untaxed portion).

[droh82]

Thanks for the great info, trc4897 and ixtap!
That link was exactly what I was looking for and your information, ixtap, is backed up in that article.
I'm now confident that I'll never to speak to Fidelity Roth "Specialist" about these complicated tax questions again.

Love this forum!!!

[ixtap]

Fidelity generally puts out pretty clear disclaimers that they are not tax people, and you should get your tax advice from a tax professional.