You have to white slip it. You can’t swap because someone is on the trip.

 

No. You can decide if your contribution goes into Roth or traditional but not the company 16%.

As far as I understand, the 16% doesn’t go into a 401k at all. It goes to the DPSP.

 

I have the company 16% deposited directly into my Brokeragelink account and my personal contribution deposited into my Roth brokeragelink.

 

Roger that

 

Thanks Bob...that makes sense. To follow up, are we ever able to roll the company contribution into a post-tax (Roth) account?

 

Which means I have to drop my current trip first I guess?

 

Not necessarily. You can enter a PCS swap request for a Q trip. It will only be honored if the trip you are dropping meets PD criteria. You don't have to use a PD first. If your dropped trip doesn't meet PD, criteria, you can submit an APD or IVD and then WS the Q trip.

 

Techique only: I put as much of my contribution in the 401k(a) part. It is a post tax account. I have opened up a Roth IRA with in Fidelity and at the end of the year rollover all my 401k(a) money into my Roth IRA. Two things: 1. its allowed under our Fidelity Rules, 2. Now as a Roth IRA there are no Required Minimum Distributions. Very simple.

 

I’ve been reading a lot of stuff from our more financially savvy guys about this, but you’re the first person I’ve read who actually described what exactly you’re doing...

So you just open a stand alone Roth IRA with Fidelity, and then have it linked(?) to the other retirement accounts, and then at the end of the year, have all the 401(a) money rolled into the Roth IRA? Is this better than just directing your personal contributions into a Roth 401(k)? I’m guessing you’re able to get around the $19,000 personal contribution limit? Because the money isn’t tax deferred?

I’m sorry guys, I know some of you have been covering this for years but I finally am in a position to start maximizing my retirement savings, so I haven’t really asked these questions until now. I’ve been caring for a sick/dying parent and also have a daughter with special needs. I have dug out of a large financial burden recently and need to get back on track with my own future.



Thanks for any and all (helpful) responses.

 

To answer, yea that is exactly what I do. Is it any better? It is the same action, however, because the money is now in a Roth IRA, it will not be subject to RMD like 401k money becomes at age 70. The 401k Roth is still in the 401k plan (earnings are still tax free as its Roth money), but you will be required to take distributions unlike the IRA. I like the freedom of determining when and how much of my Roth money to cash in as I will use it to offset taxable income. The hope is I can lower my tax bracket on retirement income.