A graphical illustration of what happens when you do a Roth IRA conversion.
Can you contribute to your adult children’s Roth IRA? Yes, but …
You need a spreadsheet to track your Roth IRA contributions and withdrawals.
Executing a mega backdoor Roth in a solo 401k require these steps: elect contribution, make contribution, make distribution, issue 1099-R.
A taxable account should still be the last resort. Max out all tax-advantaged accounts before investing in a taxable account.
You can add after-tax contributions and in-service distribution to your solo 401k if you get your own plan document. It costs less than you think.
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.
The new myRA being created by the Obama administration is simply Roth IRA invested in savings bonds.
The previous post Converting to Roth and Harvesting Capital Gains Under Obamacare Premium Subsidy shows when you are getting a premium subsidy for buying health insurance on the exchange under Obamacare, you face a marginal tax rate of about 25-30% for ordinary income and 10-15% for long-term capital gains, when normally ordinary income would be […]
You will pay an extra 10-15% tax if you convert to Roth or realize capital gains while you receive the premium subsidy under the ACA.