Hi all,
I've been doing MBR (Request In-service withdrawal/Rollover withdrawal to rIRA) since last year and always been a smooth process. After making the phone call to request for the withdrawal request/rollover paperwork, it usually takes about 4-5 days to get to me and 3 days for them to receive the filled out paperwork. When they receive it, the withdrawal request goes through (which can be tracked on VG site/app). For most of 2020 this was the case, now since the end of 2020 til now VG changed the delivery address to be sent to El Paso, TX (before it was sent to Valley Forge, PA). It is taking longer for me to receive the paperwork (7+ days) and longer for them to receive the filled out paperwork and process the withdrawal request (6 days). Another issue I am experiencing, VG processed the withdrawal request on 6/21 and the execution/trade date was 6/23. Usually the trade date should be the same as the withdrawal date in this case (should be 6/21).
I'm wondering what are your experiences with MBR through Vanguard so far?
Vanguard Mega Backdoor Roth (MBR) Experience
Re: Vanguard Mega Backdoor Roth (MBR) Experience
Does your plan not offer online conversion of after-tax money to Roth 401k? That sounds like a lot less hassle than having to mail in forms periodically.
(The 401k plan administered by Vanguard at my former employer offered this)
(The 401k plan administered by Vanguard at my former employer offered this)
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Re: Vanguard Mega Backdoor Roth (MBR) Experience
Unfortunately, No online conversion of after-tax money to Roth 401k (in-plan). This would make things super easy.
Re: Vanguard Mega Backdoor Roth (MBR) Experience
Not Vanguard, but I have a similar problem. My plan custodian insists on mail-in forms or fax for in plan Roth conversion (plan has no rollover to external IRA).
I tried mail-in for a couple of years, and it always took 1 week or more. I got tired of it. Then I got an account at gotfreefax.com, paid a subscription that would allow 100 pages per year for $10, and also bought a PDF editing software for another $99. Now I just fill the PDF, then upload the PDF to gotfreefax.com and hit send button. It is usually picked up and processed in 1 business day.
I tried mail-in for a couple of years, and it always took 1 week or more. I got tired of it. Then I got an account at gotfreefax.com, paid a subscription that would allow 100 pages per year for $10, and also bought a PDF editing software for another $99. Now I just fill the PDF, then upload the PDF to gotfreefax.com and hit send button. It is usually picked up and processed in 1 business day.
Re: Vanguard Mega Backdoor Roth (MBR) Experience
Good for you, at least you have the option to fax. Snail mail was the only option for all VG customers. Even their investment advisors/customer reps thinks this method is ancient.lakpr wrote: ↑Thu Jun 24, 2021 9:26 pm Not Vanguard, but I have a similar problem. My plan custodian insists on mail-in forms or fax for in plan Roth conversion (plan has no rollover to external IRA).
I tried mail-in for a couple of years, and it always took 1 week or more. I got tired of it. Then I got an account at gotfreefax.com, paid a subscription that would allow 100 pages per year for $10, and also bought a PDF editing software for another $99. Now I just fill the PDF, then upload the PDF to gotfreefax.com and hit send button. It is usually picked up and processed in 1 business day.