Most people working at private companies have a 401(k) plan, and that's it. Those who work at educational institutions or non-profits often have a 403(b) plan, which works more or less the same as a 401(k) plan. Some state or local government or [...]
Mega Backdoor Roth: Convert Within Plan or Out to Roth IRA?
Mega backdoor Roth is catching on! Several readers emailed me saying their employer added non-Roth after-tax contributions and allowed converting to Roth within the plan (officially known as an In-plan Roth Rollover). I didn't ask but I don't [...]
Mega Backdoor Roth in TurboTax
A mega backdoor Roth means making non-Roth after-tax contributions to a 401k-type plan and then taking the money out (with earnings) to a Roth IRA. It's a great way to put additional money into your Roth IRA without having to pay much additional tax. [...]
Executing Mega Backdoor Roth In Solo 401k
At the end of 2014, I amended and restated my solo 401k plan from a prototype plan sponsored by Fidelity to a prototype plan sponsored by Ascensus. I did that in order to enable non-Roth after-tax contributions for so-called mega backdoor Roth. See [...]
Mega Backdoor Roth In Solo 401k: Control Your Own Destiny
Today we revisit the issue of doing the mega backdoor Roth in a solo 401k for those of you who are self-employed. For more background on solo 401k, please read Solo 401k When You Have Self-Employment Income. As I mentioned in the previous article [...]
Mega Backdoor Roth and Access To Your Money Before 59-1/2
In other articles I showed that contributing to after-tax 401k/403b and rolling it over to Roth IRA (the "mega backdoor Roth") is great if your 401k/403b plan allows it. It's still worth it even if you have to wait a few years before you can roll it [...]
Mega Backdoor Roth Without a Big Paycheck
Life isn't fair. Some people want to do the mega backdoor Roth (see previous article The Elusive Mega Backdoor Roth), and they can afford it, but their 401k/403b plans don't let them. Some people are in a plan that allows it but if they go full tilt [...]
Mega Backdoor Roth Without In-Service Distribution
I'm encouraged by the result of my anonymous poll on the availability of non-Roth after-tax contributions in your 401k or 403b plans. Indeed a good 40% of respondents reported having it available. It's not that elusive after all. This is really good [...]
The Elusive Mega Backdoor Roth
I usually don't write about things that don't affect me, because as a reader once said to me, topics that pique the author's own interest create the best content. I'm making an exception here because it's important enough if by chance you happen to [...]
