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12-02-2024 | 10:37 AM

#161

UALinIAH

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Joined: May 2015

Posts: 1,200

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From: 777 CA

Quote:

Originally Posted by L8Z8

There's an option to spill after the 415(c) limit into the PCRA? Would this be taxable cash?

No. I meant all your 415c annual limits. If you want more the only option would be add into an IRA with after tax money (immediately Roth it) and you can then roll your IRA into your PRCA obviously that's a small yearly amount but it adds up. The CBP for those over 59.5 will be another option once that gets approved without all these crazy restrictions.

I was just bringing up the PCRA because I'm always suprised that some of my FOs don't even realize it's an option.

12-02-2024 | 11:06 AM

#162

L8Z8

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Joined: Aug 2023

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Quote:

Originally Posted by UALinIAH

You're saying you roll a back-door Roth IRA into your PCRA? How it that more beneficial than just keeping it as a Roth IRA? Are you sure you're not referring to an after-tax 401(k) to roth 401(k) conversion?

12-02-2024 | 11:13 AM

#163

UALinIAH

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Joined: May 2015

Posts: 1,200

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From: 777 CA

Quote:

Originally Posted by L8Z8

It's a reverse rollover and our Schwab account allows it. It's still Roth money and depending on who you use for an IRA Schwab may have more investing options (Vanguard restricts leveraged holding as a basic example). Also some people prefer to have their retirement accounts in a single place. I'm not advocating any directions for anyone. Just saying there are tons of options for people who want to save more than the 401k max.

https://www.schwab.com/learn/story/i...over-right-you

12-02-2024 | 11:39 AM

#164

L8Z8

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Quote:

Originally Posted by UALinIAH

Ah, the reverse rollover - gotcha. Yep I'm familiar. I suppose I'm just lazy and leave the IRA with Vanguard. Good 'nuff for now. I might reverse roll closer to retirement to simplify things, but not a big deal if I don't. TBH, I'm often shocked when folks at work know anything about any of this. I feel like this LOA vote will be more driven by herd following and less about understanding investing strategies.

12-02-2024 | 11:48 AM

#165

UALinIAH

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Joined: May 2015

Posts: 1,200

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From: 777 CA

Quote:

Originally Posted by L8Z8

I too am surprised how many don't know a lot about their options. I think that's why threads like this are great. Some don't want to be hands on or spend the time to do the research and that's fine and why there's an entire industry dedicated to financial advice. To each their own but more information is rarely a bad thing.