Questions for you Mega-Backdoor Roth'ers...
#1
Gets Weekends Off
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Joined APC: Feb 2015
Posts: 319
Questions for you Mega-Backdoor Roth'ers...
With the 30 June paycheck, I just hit the $55,000 415(c) limit. $17,700 from Delta and $37,300 in after-tax contributions from me. I've rolled the entire $37,300 into a Roth for the Mega Backdoor (done incrementally every two weeks). My questions...
1) Am I still eligible to contribute to a Traditional IRA this year?
2) If so, how much? $5500?
3) Can that amount also be rolled into the Roth?
P.S. I'm not old enough for catch-up contributions.
1) Am I still eligible to contribute to a Traditional IRA this year?
2) If so, how much? $5500?
3) Can that amount also be rolled into the Roth?
P.S. I'm not old enough for catch-up contributions.
#2
Line Holder
Joined APC: May 2016
Posts: 41
With the 30 June paycheck, I just hit the $55,000 415(c) limit. $17,700 from Delta and $37,300 in after-tax contributions from me. I've rolled the entire $37,300 into a Roth for the Mega Backdoor (done incrementally every two weeks). My questions...
1) Am I still eligible to contribute to a Traditional IRA this year?
2) If so, how much? $5500?
3) Can that amount also be rolled into the Roth?
P.S. I'm not old enough for catch-up contributions.
1) Am I still eligible to contribute to a Traditional IRA this year?
2) If so, how much? $5500?
3) Can that amount also be rolled into the Roth?
P.S. I'm not old enough for catch-up contributions.
#3
401k is limited to $18.5. You can continue to contribute to 401a up to $55k (401k + Company contributions + 401a). If you're interested in what he's talking about, google "Mega back-door Roth IRA." This is not to be confused (though often is) with the regular back-door Roth IRA.
#6
Gets Weekends Off
Thread Starter
Joined APC: Feb 2015
Posts: 319
#7
Gets Weekends Off
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Joined APC: Feb 2015
Posts: 319
As always, I'm not a tax guy and it's always good to chat with one. However, I have done the exact same thing you did.
401k is limited to $18.5. You can continue to contribute to 401a up to $55k (401k + Company contributions + 401a). If you're interested in what he's talking about, google "Mega back-door Roth IRA." This is not to be confused (though often is) with the regular back-door Roth IRA.
401k is limited to $18.5. You can continue to contribute to 401a up to $55k (401k + Company contributions + 401a). If you're interested in what he's talking about, google "Mega back-door Roth IRA." This is not to be confused (though often is) with the regular back-door Roth IRA.
#8
Gets Weekends Off
Joined APC: Nov 2011
Posts: 4,503
I guess what I've failed to comprehend yet is what benefits does the Roth IRA have to the Roth 401k? I haven't pulled the trigger and switched from Roth 401k yet because I haven't been able to figure that out yet.
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#9
-I can turn my Roth IRA into a SDIRA and invest in real estate...I can not directly do that with my Roth 401k.
-$55k/yr (401a -> Roth IRA) vs 18.5k/yr (401k).
-Roth IRAs are much more flexible wrt passing it on to your heirs.
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