Mega Backdoor Roth Conversion Explained!
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I do after tax non roth and contribute 20K to pretax and 30K to the after tax non roth. I work for morgan stanley so it helps. Keep in mind it has income limits. If you make over 275-280K a year you can only do like 10% max
Guys, what's the best (non employer) Roth 401K company I can open for my daughter? (Or myself)
What if my employer doesn't offer a 401k? Can I roll a self funded IRA into a Roth IRA?
Does self-employed "Cash Ballance Plan/ Defined Benefit Plan" go to your beneficiaries if you have no spouse?
Fidelity allow this
This is super smart. And those that say “this is avoiding taxes”. If you paid attention the money was already taxed. You are just putting it to work instead of spending it on crap. “The average person can’t do this”. Too bad so sad. Don’t strive to be average.
Great stuff—Asked the question to HR and threw them for a loop all the way up the chain—three times.
From what i understand this is getting thrown away in january for folks earning 400k plus
I have never seen someone explain this so well and get all of the details strait. My employer offers this option and most of our people take advantage of it. I’ve heard it explained poorly so many times, you even got in the carrot about not squeezing out your employers match or contribution which is significant at my job and can bite you quickly. Great presentation.
What is the difference between leaving the money in the after tax 401k vs the Distribution to the Roth account?
Fidelity allows it. My 401(k) is through Fidelity and they just turned this ability on a month ago.
Would be better to provide some real world information instead of just repeating the same thing. How do you actually contribute to it?
If you're contributing each paycheck, you have to roll over every paycheck? If you don't it will start to accrue interest and then you will have to pay tax on that portion, which gets messy to document.
Do you know if the Mega Backdoor Roth is subject to the Pro-Rata Rule as well?
Does this work for spouses? Can each spouse do the 56K individually?
I am 63. Can I do this now?
Do you have to put in traditional 401k first or can you put into after tax only
One Question here:
I am single and if I want to contribute for 2021 Roth IRA with full $6000 upfront in the first month of 2021 but I am not sure what will be my income in the 2021. It may fall below or go above the threshold set by IRS, so in that case how I am able to make decision that I should max out my contribution or not since the year 2021 just started and not sure what will be income by end of the year 2021?
Is it the case that my 2020 annual income should be less than $124K so that it makes eligible to contribute $6000 max for 2021 Roth IRA and the annual income in 2021 should be less than $125K, so that I will make eligible to contribute $6000K in 2022 Roth IRA and so on… Basically, the previous year annual income will determine the contribution limit for the following year?
When should I file form 8606 for IRA contributions of year 2021? Will it be tax deadline of next year April 2022?
Do HSA contributions count against the mega roth limit?
My company offer traditional and roth 401k as well as after tax contributions and a 6% employer match and though my money is vested immediately, I can't rollover contributions until I leave the company or 24 months. Does that mean I could still mega roth but have to wait 24 months before I get started and then would be rolling over money that is 2 years old?
I have been contributing after-tax to my 401(k) for years. My employer allows in-service distribution. Can I convert earnings made by the pretax contributions to my Roth 401k, just the post-tax contributions or what? The form they completed for my signature says the partial conversion will be prorated against Eligible Contribution Types…which sounds like they want to tax it!
A little help?
Is there a way to do this for self employed folks? I know there are SEP IRA's but those tend to be before tax dollars
Is mega backdoor conversion subject to 5 year rule? What's the withdraw limitation and penalties?
Excellent content. Thanks
If I already have a Traditional IRA can I do this? I heard there are some concerns with having a Traditional IRA and doing a backdoor.
Great video, do you know if I can have Roth IRA with my 457???