Quick question for all:

does Delta or Fidelity accept rollovers from traditional IRAs to the 401(k)? I Want to “clean the deck” so to speak for mega backdoor Roth.
Thanks

 

Yes. Call them and they hold your hand through the whole thing.

 

Yes, but note Roth 401k dollars or Roth dollars via conversion in previous plans cannot go into the DL 401k. That still allows for the Roth backdoor IRA. Previous Roth dollars from a 401k would just roll to your RIRA.

The Mega is also 401 after tax dollars and has zero bearing on previous IRA balances. To “clean the deck” for the standard backdoor RIRA you simply need a “0” traditional IRA balance between tax years. That applies to each filer individually in the event you are also planning on the spousal contributions.

If you are unsure, send a Dart to R&I. Especially if military with contributions on combat pay, that’s another can of worms. Not difficult, but additional steps required to keep the tax benefits.

And yes, so many jokes exist with these terms, but the IRS has accepted to backdoor terminology so it is what it is.

 

I’m sorry, but that is false. I rolled a 401k from a previous employer that was mostly Roth into the Delta 401k with no problems. The source groups reflect rollover and Roth rollover.

 

I mentioned the Dart as a traditional 401k can come over however. You cannot bring a RIRA into the 401k, but he shouldn’t have any Roth dollars involved with a traditional IRA to bring into the 401k for a clean slate backdoor Roth IRA as previous employer Roth dollars rolled out of a 401k would go to a RIRA. Mega backdoor is only dealing with the 401k.

OP is talking IRA to 401k. Not 401k:401k.

 

I missed the IRA to 401k part. Roth 401k to Delta 401k should be no problem. I stand corrected if Roth IRA to Roth 401k is not allowed.

 

Can we take money out of our plan and move it to a different 401k?

 

Thank you all for the advice.

 

At 59.5+ you can take out your personal contributions and do whatever you want, but to another 401k would be subject to their (other 401k sponsor) rules. Not sure why someone would do that from the DL 401k but I guess you could. Now to an iRA/SDIRA, I could see it. Company contributions and any in plan Roth conversions cannot be moved until separation (retirement). All of this info is within the SPD that in accessible on both DLnet and Netbenefits.