In this video I show you how to figure out if you are eligible to make a Mega Backdoor Roth contribution with your 401(k)
To successfully do this, you need to be able to make after-tax contributions within your 401(k).
Other IRA videos:
Video: Can you make a deductible IRA contribution?
Video: Can you make a Roth IRA contribution?
Video: After-Tax 401(k) + Mega Backdoor Roth IRA explained! (no flowchart)
Timeline:
0:00 Start
0:08 Intro
0:47 401(k) Contribution Limit
1:30 Does your 401(k) allow After-Tax contributions?
2:33 Sum total of 401(k) contributions
3:53 Does your 401(k) allow in-plan Roth conversions?
4:14 Yes – Your 401(k) allows in-plan Roth conversions
5:19 No – Your 401(k) does not allow in-plan Roth conversions
5:25 401(k) in-service distribution (to a Roth IRA)
8:24 Outro
My name is Alan Hensley. I’m a CERTIFIED FINANCIAL PLANNER™, and I love coming to work every day because it’s my job to help successful people create a financial plan so they can find more time to enjoy life. Taking the responsibility of retirement planning off my clients’ shoulders is something I take very seriously.
www.alan-hensley.com…(read more)
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If I hit the $19,500 (pretax 401k and Roth 401k) in September and for the rest of the year, I plan to contribute to after tax 401k. By the end of the year, I want to rollover my after tax 401k to Roth IRA. What about the earnings from the after tax? Can I roll that to a trad IRA and that will be no tax consequences?
I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $950,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.