Mega Backdoor ROTH
07-30-2018, 11:30 AM
#11
New Hire
Joined APC: Mar 2009
Posts: 9
Originally Posted by KnightFlyer
I think you can take 2 withdrawals per year on after-tax monies. Check with Vanguard with a call or read the plan rules on their website.
I'm saving 4% after-tax with Vanguard (so as to not lose any B fund contributions). After retirement, I'm rolling all the after-tax monies into a Roth IRA (have to pay tax on any gains) when taxable income is lower.
I'm saving 4% after-tax with Vanguard (so as to not lose any B fund contributions). After retirement, I'm rolling all the after-tax monies into a Roth IRA (have to pay tax on any gains) when taxable income is lower.
07-30-2018, 03:54 PM
#12
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,433
It wasn’t until a few years ago that you could separately pull after tax money out. Before you had to take the whole 401k to roll into a Roth IRA. Vanguard said I had after tax money in there from way back so if I rolled the after tax now I would have to pay tax on the gains. After I retire I’m deferring pension a year so my income will be a lot lower and hopefully tax hit will be less. At least that’s the plan.
Sent from my iPad using Tapatalk
Sent from my iPad using Tapatalk
08-03-2018, 07:43 AM
#13
Line Holder
Joined APC: Sep 2007
Posts: 51
Originally Posted by TOMM
Speak with your tax rep or R&I committee but you can go into vanguard, employer plan, manage my money, and convert your after-tax funds directly into a Roth after each paycheck. If you do this before there are any gains on that money after each check, it immediately goes into a Roth and will grow tax free. The contributions and gains.
https://retirementplans.vanguard.com...hInPlanQnA.jsf
https://retirementplans.vanguard.com...hInPlanQnA.jsf
08-04-2018, 12:53 PM
#15
Not a real airline pilot
Joined APC: Jul 2016
Position: Cargo > Pax
Posts: 365
Originally Posted by Tokyo
We can only do this twice a year at Fedex.
Please elaborate. 2x a year at Vanguard? I don’t understand. It’s just a function of the Vanguard website to convert to Roth. Haven’t seen a 2x a year restriction anywhere. Thanks.
08-06-2018, 05:30 AM
#16
Line Holder
Joined APC: Sep 2007
Posts: 51
From the PRSP section of the Pilot Benefit Book, under the After Tax column, pg R-57:
Regular withdrawals
allowed twice each Plan
Year. Withdrawals are
processed within one
week upon Vanguard’s
receipt of the withdrawal
application. Minimum
regular withdrawal is
$500, or entire account if
less than $500.
Again, this is not under the convert to Roth button on Vanguard. It falls under the withdrawal/loan button. You withdraw after-tax Roth 401k money and tell them to deposit it into your Roth IRA.
Regular withdrawals
allowed twice each Plan
Year. Withdrawals are
processed within one
week upon Vanguard’s
receipt of the withdrawal
application. Minimum
regular withdrawal is
$500, or entire account if
less than $500.
Again, this is not under the convert to Roth button on Vanguard. It falls under the withdrawal/loan button. You withdraw after-tax Roth 401k money and tell them to deposit it into your Roth IRA.
Thread
Thread Starter
Forum
Replies
Last Post
