Fidelity Roth Conversion Questions

[swakyaby]

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Since I can only pick shares, if I'm shooting for a specific dollar amount and the market moves much that day, I may miss my target. This is why I will start with a conversion some 10-20% below my target, then do another and possibly a third to get close to my dollar target.

When doing a Roth IRA conversion in my Fidelity account, I have found it was much simpler than that. If you place the conversion order after the market closes for the day but no later than 2 hours after the market closes, you will know the exact share price and it’s clearly indicated in your Fidelity order screen. If you divide the desired dollar amount by the share price, you get the exact number of shares to convert. There’s no guesswork required. But if you place your order outside of that 2-hour window, then my Fidelity rep says you will receive the next day’s share price and cannot make an exact calculation.

 

[oldphd]

When doing a Roth IRA conversion in my Fidelity account, I have found it was much simpler than that. If you place the conversion order after the market closes for the day but no later than 2 hours after the market closes, you will know the exact share price and it’s clearly indicated in your Fidelity order screen. If you divide the desired dollar amount by the share price, you get the exact number of shares to convert. There’s no guesswork required. But if you place your order outside of that 2-hour window, then my Fidelity rep says you will receive the next day’s share price and cannot make an exact calculation.

Interesting. I'll have to try. I had always submitted the order when the market is open, thinking I would need to do it before the close, much like a buy/sell. Only recently saw the comment about doing it after the close, but I also thought the share prices don't get updated until a couple of hours after close. Seems like there might be a short window when you know the price but can still execute the order.

 

[oldphd]

Guess I should have read all the fine print at the bottom of the screen for conversions. It says you have until 9 PM on most days. I believe MF prices are typically set a couple of hours after closing. This would correspond to the window mentioned above, where you can do the conversion when knowing the price.