The special rule for no-penalty withdrawals from a 401k plan at 55 actually isn’t that useful.
A step-by-step tutorial for how to do a backdoor Roth IRA, including links to articles on how to report it on the tax return.
A taxable account should still be the last resort. Max out all tax-advantaged accounts before investing in a taxable account.
You still have good access to your money before age 59-1/2 when you do the after-tax 401k or 403b rolled over to Roth IRA.
You can still take advantage of non-Roth after-tax 401k or 403b contributions even if it will make your paycheck very small.
Even if your plan does not allow in-service distributions, chances are you should still make non-Roth after-tax contributions. Just wait until you change jobs and roll them into a Roth IRA.
If your 401k/403b plan cooperates, you can put up to additional $35,000 per year into your Roth IRA. Find out if you are lucky or not.
Interesting tidbits from a Vanguard report covering 3 million 401k participants. See where you stand.
[Updated on October 17, 2014 with a new example.] I said in The Case Against Roth 401(k) I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k). I gave these reasons: Fill in lower tax brackets in retirement Avoid high state income tax Leave the option open […]
See how to avoid going out of the market when you are rolling over a 401k, especially a large amount. Don’t accidentally time the market.
Consider the 401k plan as a part of the total compensation. The cost of a high-cost 401k plan isn’t really that high when you don’t stay with the same employer for that long.
The second part of the Asset Rich Income Poor strategy is relatively easy when you get overpaid, uh, increase the value, for what you do. I wrote about the basics in 3 Secrets to a Fat 401k. To achieve Asset Rich, we need to work on these 3 factors: the amount you invest; the rate […]