Torque converter to flywheel clearance

[TheGriz]

So, this is my first auto tranny (700r4) install and I have a noobish question. I have the torque converter slid into the transmission, and the transmission is now bolted to the back of my 350, but there is a 1/4"-3/8" gap between the torque converter and flywheel. Of course the torque converter could be slid back towards the flywheel to eliminate the gap, but I was under the impression that the torque converter should always be slid as far into the transmisison as possible.
Maybe this quick picture helps:

Please drop some knowledge on me.
Thanks in advance...

 

[3DCrawler]

The gap you have is normal. It should slide to the flywheel with little effort.

 

[Chris_M]

If you didn't have that gap, then you'd have problems and didn't seat to converter properly.

 

[TheGriz]

Thanks... the torque converter does slide back towards the flywheel quite easily, I just wasn't sure if that gap was normal or if it was ok to slide the toque converter out slightly to mate up with the flywheel.