Fidelity IRA to Roth IRA wait time?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
WentzWagon
Posts: 211
Joined: Thu Jan 08, 2015 10:25 am

Fidelity IRA to Roth IRA wait time?

Post by WentzWagon »

So I just transferred $5500 to my post tax IRA about 30 minutes ago.

How long do I have to wait to transfer it to my Backdoor Roth IRA? I would like to deploy the $5500 today
CppCoder
Posts: 920
Joined: Sat Jan 23, 2016 9:16 pm

Re: Fidelity IRA to Roth IRA wait time?

Post by CppCoder »

WentzWagon wrote: Mon Feb 05, 2018 3:36 pm So I just transferred $5500 to my post tax IRA about 30 minutes ago.

How long do I have to wait to transfer it to my Backdoor Roth IRA? I would like to deploy the $5500 today
Deploying the money and doing the Roth conversion are two different issues. I say this because Fidelity will likely let you make a trade on the money immediately, or worst case scenario, tomorrow. However, it seems that it's usually 2-3 days until they allow a conversion. You'll need to decide which is more important to you, being out of the market a few days or potentially having slight gains to pay taxes on if you invest now and see an increase before you convert.
investor997
Posts: 615
Joined: Tue Feb 07, 2017 3:23 pm

Re: Fidelity IRA to Roth IRA wait time?

Post by investor997 »

It took the better part of a week before the funds became "available for withdrawal" and I was able to initiate the Roth conversion.

If you want deploy it today you could always trade it immediately and buy some ETFs; then wait until the funds become available, sell the ETFs and initiate the conversion. The conversion itself happened overnight.
Topic Author
WentzWagon
Posts: 211
Joined: Thu Jan 08, 2015 10:25 am

Re: Fidelity IRA to Roth IRA wait time?

Post by WentzWagon »

CppCoder wrote: Mon Feb 05, 2018 3:43 pm
WentzWagon wrote: Mon Feb 05, 2018 3:36 pm So I just transferred $5500 to my post tax IRA about 30 minutes ago.

How long do I have to wait to transfer it to my Backdoor Roth IRA? I would like to deploy the $5500 today
Deploying the money and doing the Roth conversion are two different issues. I say this because Fidelity will likely let you make a trade on the money immediately, or worst case scenario, tomorrow. However, it seems that it's usually 2-3 days until they allow a conversion. You'll need to decide which is more important to you, being out of the market a few days or potentially having slight gains to pay taxes on if you invest now and see an increase before you convert.
I don't have the $5,500 invested in anything. Just moved the Cash i have in my money market to the tIRA so its sitting in the tIRA as cash.

Can I just move that cash from the tIRA to the roth IRA today. If I need to wait until tomorrow to then trade with it I would.

I have a premium account with Fidelity so I can transfer money from my bank to fidelity instantly.
User avatar
Epsilon Delta
Posts: 8090
Joined: Thu Apr 28, 2011 7:00 pm

Re: Fidelity IRA to Roth IRA wait time?

Post by Epsilon Delta »

investor997 wrote: Mon Feb 05, 2018 3:45 pm It took the better part of a week before the funds became "available for withdrawal" and I was able to initiate the Roth conversion.

If you want deploy it today you could always trade it immediately and buy some ETFs; then wait until the funds become available, sell the ETFs and initiate the conversion. The conversion itself happened overnight.
No need to sell the ETFs, you can convert them in kind. The expected cost of one day delay in investing $5,500 is around $3. While it's something to get done, a delay is not something to fret over.
CppCoder
Posts: 920
Joined: Sat Jan 23, 2016 9:16 pm

Re: Fidelity IRA to Roth IRA wait time?

Post by CppCoder »

WentzWagon wrote: Mon Feb 05, 2018 3:50 pm
CppCoder wrote: Mon Feb 05, 2018 3:43 pm
WentzWagon wrote: Mon Feb 05, 2018 3:36 pm So I just transferred $5500 to my post tax IRA about 30 minutes ago.

How long do I have to wait to transfer it to my Backdoor Roth IRA? I would like to deploy the $5500 today
Deploying the money and doing the Roth conversion are two different issues. I say this because Fidelity will likely let you make a trade on the money immediately, or worst case scenario, tomorrow. However, it seems that it's usually 2-3 days until they allow a conversion. You'll need to decide which is more important to you, being out of the market a few days or potentially having slight gains to pay taxes on if you invest now and see an increase before you convert.
I don't have the $5,500 invested in anything. Just moved the Cash i have in my money market to the tIRA so its sitting in the tIRA as cash.

Can I just move that cash from the tIRA to the roth IRA today. If I need to wait until tomorrow to then trade with it I would.

I have a premium account with Fidelity so I can transfer money from my bank to fidelity instantly.
There is no explicitly defined waiting time of which I know. When the cash is in the tIRA, just try to convert it. If Fidelity isn't ready to let you convert, you'll receive an error message. I also can trade instantly after I initiate a transfer to Fidelity. They still make we wait for the money to clear to do a Roth conversion.
stlutz
Posts: 5576
Joined: Fri Jan 02, 2009 1:08 am

Re: Fidelity IRA to Roth IRA wait time?

Post by stlutz »

IME they want 4 business days before the money is "available for withdrawal".
krannerd
Posts: 117
Joined: Sat Jun 25, 2011 12:05 pm

Re: Fidelity IRA to Roth IRA wait time?

Post by krannerd »

My experience is that there is 1 full business day between funding an IRA and being able to convert....the same for time that the conversion takes.

So, of you funded the IRA today , you can convert on Wednesday. And you,could purchase funds in the converted IRA on Friday.
User avatar
whodidntante
Posts: 9817
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Fidelity IRA to Roth IRA wait time?

Post by whodidntante »

If the funds are at Fidelity and settled, available to withdraw from another account, then they become available immediately after contributing to an IRA. How do I know? I did my non-deductible tIRA contribution today from my cash management account.

Also, I picked a really good time to initiate a custodian to custodian transfer for my HSA. My investments were liquidated right before the drop!

:sharebeer
Post Reply