Although I believe a traditional deductible IRA is often better than a Roth IRA, a Roth IRA is still better than a taxable account if you aren't eligible for a deductible contribution to a traditional IRA. When you aren't allowed to contribute to a [...]
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 [...]
Rollover a 529 Account From One Plan To Another
A reader alerted me that the interest rate on Virginia's CollegeWealth 529 plan invested in a BB&T savings account had been lowered from 2.25% to 1.00%. The other bank in the same plan Union Bank & Trust also lowered the rate to 1.5% over [...]
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 [...]
Vanguard Solo 401k Illegally Refuses Incoming Rollover From IRA?
Speaking of solo 401k, I heard that Vanguard recently asked all its solo 401k plan customers to "amend and restate" their plan with a new package of documents. This is not unusual. Laws and regulations change. Plans are required to adopt the changes [...]
