Sentences with phrase «mega backdoor»

If your employer allows after - tax, non-Roth contributions, and you can afford it, you might consider maxing this out so that you can potentially take advantage of the Mega Backdoor Roth IRA.

During FIRE, ideally I'll have access to (1) taxable account money and (2) backdoor / mega backdoor Roth contributions.

Another option for those of us still working is to use a mega backdoor Roth if our 401k permits after - tax contributions and in - service rollovers.

It would kill the so - called mega backdoor Roth contribution that you do through a 401 (k), all with after - tax dollars that get converted.

Are normal backdoor Roth IRA and mega backdoor Roth IRA still possible in 2018 tax plan?

However, the IRS released guidance that specifically addressed both backdoor Roth IRA conversions, and the so - called Mega Backdoor Roth IRA.

Filed Under: Investing Tagged With: Backdoor Roth IRA, Investing, Mega Backdoor Roth IRA Conversion, Roth IRA, Roth IRA Conversion Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

I am not an expert but I have done extensive research on the big firms for a Solo401K and from what I have found noe offer the (2) key features you need to do a «Mega Backdoor Roth».

So in order to do the Mega Backdoor Roth, I have only found third party Solo401K providers to offer the critical non-roth after - tax contribution feature.

This is what can allow you to do a mega backdoor Roth IRA.

It's my understanding that you don't have to go the same route as converting to a traditional IRA for the Backdoor IRA when doing a Mega Backdoor IRA because the money is already post-tax.

The first additional step for the Mega Backdoor Roth IRA is that you need to figure out how much to contribute to maximize your after - tax 401k contributions.

The Mega Backdoor Roth IRA is another potential tool to maximize tax savings IF you have more bandwidth for savings.

You will then be leveraging this employer sponsored plan for the Mega Backdoor Roth IRA.

Since discussions of Mega Backdoor Roth conversions (i.e., a rollover from a 401 (k) of the Employee After - Tax source to a Roth IRA for the basis, while rolling the earning to a traditional IRA) are targeted to HCEs, and normally not of much interest to most NHCEs, we have a problem.

The other two are from Geoff Curran an investment advisor from my old investment advisory firm, Mega Backdoor Roth IRA Explained and http://www.merriman.com/wealth-enhancement/mega-backdoor-roth-ira-explained/ and for How to Report a Backdoor Roth Conversion.

My understanding is that an IRA to 401k reverse rollover is: * required when preparing to do a backdoor Roth IRA conversion * not required when preparing to do a mega backdoor Roth IRA conversion

From your mega backdoor article it sounds like the pro-rata conversion rule that mucks things up only applies when moving money from a traditional IRA account to a Roth IRA account.

As we previously discussed in our ultimate guide on how to do a mega backdoor Roth IRA conversion, one of the simplest ways to eliminate money in these pre-tax accounts is to roll it into an employer sponsored 401k.

His blog is incredible and his posts on the mega backdoor Roth, the Roth conversion ladder, and the ultimate retirement account are, by far, some of the best content you'll find in the community.