Originally Posted by
TED74
I could be misunderstanding what you’re doing, but I don’t believe this is necessary any longer.
Roth In-Plan Conversions for Company Contributions
Pilots should note the following recent amendment that was made to the Delta 401(k) Plan for pilots.
Effective January 1, 2022, pilots may elect to convert all or any portion of their Non-elective Company Contributions to the Roth In-PlanConversion (Employer) Account. The amounts held in the Roth In-Plan Conversion Account and the Roth In-Plan Conversion (Employer) Account will be treated as Roth contributions for purposes of the investment, distribution and withdrawal provisions of the Plan.
This provision takes care of the Roth conversion portion. It is a nice enhancement to the plan and takes care of the objective many pilots have with the 401a after tax technique. The second piece is that 401a after tax contributions can be rolled over to another custodian with a wider range of investment options. This second step is how you get the money into a Self Directed Roth IRA.
*Investing with a Self Directed Roth IRA should not be taken lightly. If you can't explain UDFI and UBIT, spend 30 minutes searching and reading before touching SDIRA funds.
** Solo 401k funds may not subject to UDFI or UBIT, but that is well beyond pilot investing techniques and requires setting up your own company with a retirement plan.