Originally Posted by
Drone
Techique only: I put as much of my contribution in the 401k(a) part. It is a post tax account. I have opened up a Roth IRA with in Fidelity and at the end of the year rollover all my 401k(a) money into my Roth IRA. Two things: 1. its allowed under our Fidelity Rules, 2. Now as a Roth IRA there are no Required Minimum Distributions. Very simple.
I’ve been reading a lot of stuff from our more financially savvy guys about this, but you’re the first person I’ve read who actually described what exactly you’re doing...
So you just open a stand alone Roth IRA with Fidelity, and then have it linked(?) to the other retirement accounts, and then at the end of the year, have all the 401(a) money rolled into the Roth IRA? Is this better than just directing your personal contributions into a Roth 401(k)? I’m guessing you’re able to get around the $19,000 personal contribution limit? Because the money isn’t tax deferred?
I’m sorry guys, I know some of you have been covering this for years but I finally am in a position to start maximizing my retirement savings, so I haven’t really asked these questions until now. I’ve been caring for a sick/dying parent and also have a daughter with special needs. I have dug out of a large financial burden recently and need to get back on track with my own future.
Thanks for any and all (helpful) responses.