Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread
Old 06-29-2018, 02:31 AM   #1  
Gets Weekends Off
Thread Starter
 
Broncos's Avatar
 
Joined APC: Feb 2015
Posts: 260
Default 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.
Broncos is offline  
Old 06-29-2018, 04:55 AM   #2  
Line Holder
 
Sparty's Avatar
 
Joined APC: May 2016
Posts: 40
Default

Quote:
Originally Posted by Broncos View Post
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.
How were you able to put in 37,300 personally? I thought the limit was 18,500?
Sparty is offline  
Old 06-29-2018, 05:09 AM   #3  
Gets Weekends Off
 
crewdawg's Avatar
 
Joined APC: Jul 2006
Posts: 2,949
Default

Quote:
Originally Posted by Broncos View Post
1) Am I still eligible to contribute to a Traditional IRA this year?

Yes

2) If so, how much? $5500?

$5,500

3) Can that amount also be rolled into the Roth?

Yes
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.

Quote:
Originally Posted by Sparty View Post
How were you able to put in 37,300 personally? I thought the limit was 18,500?
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.
crewdawg is offline  
Old 06-29-2018, 09:56 AM   #4  
Gets Weekends Off
 
Gunfighter's Avatar
 
Joined APC: Apr 2007
Posts: 2,543
Default

I believe you can also skip over the 18.5 in 401k and go straight 401a. That way you don't have a split between Roth 401k and Roth IRA.
Gunfighter is offline  
Old 06-29-2018, 11:42 AM   #5  
Gets Weekends Off
 
m3113n1a1's Avatar
 
Joined APC: Apr 2018
Posts: 1,438
Default

Love the financial knowledge on this forum. What's the advantage of doing 401a vs Roth 401k? Is it just because you can pull it out of the company account and roll it into your own Roth IRA (mega backdoor)?
m3113n1a1 is offline  
Old 06-29-2018, 11:43 AM   #6  
Gets Weekends Off
Thread Starter
 
Broncos's Avatar
 
Joined APC: Feb 2015
Posts: 260
Default

Quote:
Originally Posted by Gunfighter View Post
I believe you can also skip over the 18.5 in 401k and go straight 401a. That way you don't have a split between Roth 401k and Roth IRA.
Yes you can. I have contributed $0 to 401k. 100% of my contributions have been 401(a).
Broncos is offline  
Old 06-29-2018, 11:43 AM   #7  
Gets Weekends Off
Thread Starter
 
Broncos's Avatar
 
Joined APC: Feb 2015
Posts: 260
Default

Quote:
Originally Posted by crewdawg View Post
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.
Thanks Crewdawg
Broncos is offline  
Old 06-29-2018, 12:37 PM   #8  
Gets Weekends Off
 
tunes's Avatar
 
Joined APC: Nov 2011
Posts: 3,782
Default

Quote:
Originally Posted by Broncos View Post
Yes you can. I have contributed $0 to 401k. 100% of my contributions have been 401(a).


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.


Sent from my iPhone using Tapatalk
tunes is offline  
Old 06-29-2018, 01:03 PM   #9  
Gets Weekends Off
 
crewdawg's Avatar
 
Joined APC: Jul 2006
Posts: 2,949
Default

Quote:
Originally Posted by tunes View Post
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.
-Roth 401k has required minimum distributions...Roth IRA does not.
-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.
crewdawg is offline  
Old 06-29-2018, 03:00 PM   #10  
Gets Weekends Off
 
grahamlax's Avatar
 
Joined APC: Jul 2008
Posts: 121
Default

what is the difference between a backdoor roth ira contribution (single- putting $5,500 in to regular IRA, paying one day of tax, and rolling it in to my roth IRA), and the mega backdoor roth ira contribution?
grahamlax is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search


Related Topics
Thread Thread Starter Forum Replies Last Post
A couple questions... chrisreedrules Flight Schools and Training 2 05-29-2012 07:27 AM
ASA/XJT Interview Stratapilot Regional 685 02-21-2012 07:00 PM
Some questions about training, 121, 61, 141 cloudseer Flight Schools and Training 2 07-12-2011 05:51 PM
So Many Questions, Where To Begin? rvrabel2002 Career Questions 10 01-16-2011 07:01 PM
Boeing 787 questions! HSLD Major 0 12-07-2005 10:11 AM


All times are GMT -8. The time now is 01:01 AM.