Questions for you Mega-Backdoor Roth'ers...
09-27-2020, 03:55 PM
#153
New Hire
Joined APC: May 2018
Posts: 8
Cares act 401K withdraw
I’m thinking about pulling 100K for Fidelity’s 401K, and rolling it over to my Roth IRA. Unique Opportunity to free Up some money without the 10% penalty, and being able to spread the the tax burden over three years. Has anybody done anything along those lines?
09-27-2020, 04:07 PM
#154
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,552
Originally Posted by DALJetjockey
I’m thinking about pulling 100K for Fidelity’s 401K, and rolling it over to my Roth IRA. Unique Opportunity to free Up some money without the 10% penalty, and being able to spread the the tax burden over three years. Has anybody done anything along those lines?
I think at most you'd want to take out 24k (assuming you're married) and put 6k into each of your Roth IRAs in 2020 and again at the start of 2021.
09-27-2020, 04:23 PM
#155
Gets Weekends Off
Joined APC: May 2014
Position: Drivin’ the bus
Posts: 718
Originally Posted by DALJetjockey
I’m thinking about pulling 100K for Fidelity’s 401K, and rolling it over to my Roth IRA. Unique Opportunity to free Up some money without the 10% penalty, and being able to spread the the tax burden over three years. Has anybody done anything along those lines?
Can you even contribute to Roth IRA given the Gross Income limits? $139k single/$206k joint?
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09-27-2020, 04:38 PM
#156
Gets Weekends Off
Joined APC: Sep 2008
Position: B767
Posts: 1,901
Originally Posted by StartngOvr
Can you even contribute to Roth IRA given the Gross Income limits? $139k single/$206k joint?
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https://www.nerdwallet.com/blog/inve...-how-to-guide/
09-27-2020, 04:38 PM
#157
New Hire
Joined APC: May 2018
Posts: 8
My income is too high to contribute. I need to speak to a true TAX PRO, the problem is “my team’s” answers are not convincing, lots of probably, the intent of the law is.. I care about the nuances of the law, not the spirit. Does anybody have a well versed TAX attorney/CPA in the Cares Act, and pro rata rule, in the ATL area. I live south, off course... Thanks in advance.
09-27-2020, 04:38 PM
#158
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,552
Originally Posted by StartngOvr
Can you even contribute to Roth IRA given the Gross Income limits? $139k single/$206k joint?
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01-05-2021, 06:35 AM
#159
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,460
PSA - New Year, New Limits
2021 - 415C limit raised to 58,000, The catch up contribution of 6,500 is a separate part of the tax code and not subject to the 415C limit.
I'll share my math for the Delta plan:
-Reaching the 58,000 max with 16% company contributions takes $362,500 in earnings.
-If you contribute 19,500 to the 401k portion (Roth or Traditional), you will reach the remaining 38,500 of company contributions with 240,625 of earnings.
MBDR crowd, it's time to review your 401a after tax contribution amounts.
I'll share my math for the Delta plan:
-Reaching the 58,000 max with 16% company contributions takes $362,500 in earnings.
-If you contribute 19,500 to the 401k portion (Roth or Traditional), you will reach the remaining 38,500 of company contributions with 240,625 of earnings.
MBDR crowd, it's time to review your 401a after tax contribution amounts.
01-05-2021, 07:55 AM
#160
Gets Weekends Off
Joined APC: May 2014
Position: Drivin’ the bus
Posts: 718
Originally Posted by Gunfighter
2021 - 415C limit raised to 58,000, The catch up contribution of 6,500 is a separate part of the tax code and not subject to the 415C limit.
I'll share my math for the Delta plan:
-Reaching the 58,000 max with 16% company contributions takes $362,500 in earnings.
-If you contribute 19,500 to the 401k portion (Roth or Traditional), you will reach the remaining 38,500 of company contributions with 240,625 of earnings.
MBDR crowd, it's time to review your 401a after tax contribution amounts.
I'll share my math for the Delta plan:
-Reaching the 58,000 max with 16% company contributions takes $362,500 in earnings.
-If you contribute 19,500 to the 401k portion (Roth or Traditional), you will reach the remaining 38,500 of company contributions with 240,625 of earnings.
MBDR crowd, it's time to review your 401a after tax contribution amounts.
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