Questions for you Mega-Backdoor Roth'ers...
07-31-2018, 09:14 AM
#111
Gets Weekends Off
Joined APC: Mar 2012
Position: 320B
Posts: 454
Ok guys today I called Fidelity and asked them to roll over my Roth 401k money into my Fidelity Roth IRA. They told me my plan didn’t allow for this.
Am I missing something? I thought this is what many of you were doing...
Am I missing something? I thought this is what many of you were doing...
07-31-2018, 09:20 AM
#112
Gets Weekends Off
Joined APC: Apr 2018
Posts: 2,987
Originally Posted by TurbineDriver
Ok guys today I called Fidelity and asked them to roll over my Roth 401k money into my Fidelity Roth IRA. They told me my plan didn’t allow for this.
Am I missing something? I thought this is what many of you were doing...
Am I missing something? I thought this is what many of you were doing...
07-31-2018, 10:32 AM
#114
Line Holder
Joined APC: Aug 2017
Posts: 94
Originally Posted by TurbineDriver
Can anyone confirm this?
Roth 401k money is not eligible to “roll out”.
401a (after-tax) money may be rolled out via an “in service withdrawal”, meaning while you still work here. The explanation and mechanics are pretty well outlined in this thread.
You can download a copy of the Summary Plan Description for the DPSP (our 401k) on Deltanet and it will give you the black and white of what is/isn’t allowed by the plan.
07-31-2018, 10:38 AM
#115
Gets Weekends Off
Joined APC: Mar 2012
Position: 320B
Posts: 454
Originally Posted by FlightCrewTools
Confirmed.
Roth 401k money is not eligible to “roll out”.
401a (after-tax) money may be rolled out via an “in service withdrawal”, meaning while you still work here. The explanation and mechanics are pretty well outlined in this thread.
You can download a copy of the Summary Plan Description for the DPSP (our 401k) on Deltanet and it will give you the black and white of what is/isn’t allowed by the plan.
Roth 401k money is not eligible to “roll out”.
401a (after-tax) money may be rolled out via an “in service withdrawal”, meaning while you still work here. The explanation and mechanics are pretty well outlined in this thread.
You can download a copy of the Summary Plan Description for the DPSP (our 401k) on Deltanet and it will give you the black and white of what is/isn’t allowed by the plan.
07-31-2018, 11:17 AM
#116
Gets Weekends Off
Joined APC: Mar 2012
Position: 320B
Posts: 454
One more question....
Is it possible to have the company’s money go into separate funds than the 401a money? It would be nice to have all the 401a money go into a money market account so there wouldn’t be any taxes on gains when you move it into a Roth IRA.
Is it possible to have the company’s money go into separate funds than the 401a money? It would be nice to have all the 401a money go into a money market account so there wouldn’t be any taxes on gains when you move it into a Roth IRA.
07-31-2018, 12:12 PM
#117
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,458
Originally Posted by TurbineDriver
One more question....
Is it possible to have the company’s money go into separate funds than the 401a money? It would be nice to have all the 401a money go into a money market account so there wouldn’t be any taxes on gains when you move it into a Roth IRA.
Is it possible to have the company’s money go into separate funds than the 401a money? It would be nice to have all the 401a money go into a money market account so there wouldn’t be any taxes on gains when you move it into a Roth IRA.
08-01-2018, 07:35 AM
#118
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
So here is my question regarding the decision to do this: If your 401 investments are doing better than your IRA investments, why would you want to make the withdrawl/transfer? Either way, they are tax free, so it would seem to me that the transfer would only be beneficial if you were doing better in a ROTH IRA than you were in a ROTH 401.
Or am I confusing ROTH 401 vs 401(a)?
Or am I confusing ROTH 401 vs 401(a)?
08-01-2018, 10:06 AM
#119
Super Moderator
Joined APC: Jul 2006
Posts: 5,553
Originally Posted by JamesBond
So here is my question regarding the decision to do this: If your 401 investments are doing better than your IRA investments, why would you want to make the withdrawl/transfer? Either way, they are tax free, so it would seem to me that the transfer would only be beneficial if you were doing better in a ROTH IRA than you were in a ROTH 401.
Or am I confusing ROTH 401 vs 401(a)?
Or am I confusing ROTH 401 vs 401(a)?
08-01-2018, 05:52 PM
#120
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
Originally Posted by crewdawg
I agree with you on the Roth 401k. However, most of this thread is discussing the 401a. The problem with 401a is that it's post tax money and the gains are taxed. You can do an "in-plan conversion" and leave it as "Roth money" in your DPSP or you can roll it to your Roth IRA. I just choose to put it in my Roth IRA for simplicity and to spread my money around. I also am trying to plus up my Roth IRA for possible SDIRA -> Real Estate investment opportunities down the road.
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